Changes

Income taxes are collected by the [[Internal Revenue Service]].  Some [[Republicans]], who advocate a smaller government and believe that it would be more efficient and less expensive, work hard to cut income taxes.

Income taxes are collected by the [[Internal Revenue Service]].  Some [[Republicans]], who advocate a smaller government and believe that it would be more efficient and less expensive, work hard to cut income taxes.

Since the Reagan Revolution of the 1980s, the top income tax rate paid by the rich has fallen sharply. However the proportion of GDP absorbed by federal taxes has remained constant at about 20%, in accord with [[Hauser's Law]].<ref> See [http://online.wsj.com/article/SB121124460502305693.html David Randon, "You Can't Soak the Rich," ''Wall Street Journal'' May 20, 2008]</ref>. Growth, however, has halved since the top rate of tax was cut. [[Liberal]] critics of [[Free Market]] capitalism point at this as evidence that cutting taxes does not benefit the whole of society, just the rich<ref>http://thinkprogress.org/economy/2012/09/12/840641/tax-cuts-rich-economic-growth/</ref>.

Since the Reagan Revolution of the 1980s, the top income tax rate paid by the rich has fallen sharply. However the proportion of GDP absorbed by federal taxes has remained constant at about 20%, in accord with Hauser's Law.<ref> See [http://online.wsj.com/article/SB121124460502305693.html David Randon, "You Can't Soak the Rich," ''Wall Street Journal'' May 20, 2008]</ref>. Growth, however, has halved since the top rate of tax was cut. [[Liberal]] critics of [[Free Market]] capitalism point at this as evidence that cutting taxes does not benefit the whole of society, just the rich<ref>http://thinkprogress.org/economy/2012/09/12/840641/tax-cuts-rich-economic-growth/</ref>.

[[Image:Hauserlaw.jpg|thumb|275px]]

[[Image:Hauserlaw.jpg|thumb|275px]]

==Year 2007 income brackets and tax rates==

==Year 2007 income brackets and tax rates==

An individual's marginal income [[tax bracket]] depends upon their [[income]] and their tax-filing classification. As of 2007, there are six tax brackets for ordinary [[income]] (ranging from 10% to 35%) and four classifications: single, married filing jointly (or qualified widow or widower), married filing separately, and [[Head of Household (Tax)|head of household]].

An individual's marginal income tax bracket depends upon their [[income]] and their tax-filing classification. As of 2007, there are six tax brackets for ordinary [[income]] (ranging from 10% to 35%) and four classifications: single, married filing jointly (or qualified widow or widower), married filing separately, and [[Head of Household (Tax)|head of household]].

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