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Your income must be 58000 or less to file your federal income taxes for free. If your income is higher then you cannot file them for free from e-file.
The more income the person makes the higher rate he or she pays
Linear taxes is the situation when the average tax rate is 20%. When this happens the tax rate will not increase with a higher income.
It depends on how the tax is structured. For example many many consider sales or gasoline taxes as regressive, because for low income groups -- it takes a higher percentage of their income to pay it. In the USA our income tax system is progressive, if you make more -- you pay a higher higher tax rate. (%). Please note, this is a simple answer to a complex question.
Income taxes are taxes paid based on the amount of your wages and other forms of income, including but not limited to investment income, pensions, interest and dividend income, business income, rental income, etc. Income taxes are assessed by and paid to the federal government and, depending on where you live, also state and local governments. State taxes can come in many forms, including not only income taxes, but also property taxes, sales taxes, use taxes, excise taxes, business taxes, etc.
income taxes
Progressive ______________ Income taxes will have a higher rate. Many other taxes, or more correctly tax benefits, may be limited or eliminated.
Your income must be 58000 or less to file your federal income taxes for free. If your income is higher then you cannot file them for free from e-file.
The more income the person makes the higher rate he or she pays
A tax is "progressive" when the tax is higher on higher incomes, so that the more money you make, the higher the percentage you pay in taxes. A "regressive tax" is a tax that is higher on LOWER incomes, so that a low-income person pays a higher percentage in taxes than a low-income person would. Highly progressive taxes are sometimes self-defeating. In England in the 1970's, for example, income taxes were at higher and higher rates up to the point that very high earners were paying 95% of their income in taxes. Since rich people have the freedom to move around, a high tax rate gives them an incentive to move. So after the Beatles recorded "Tax Man" ("That's one for you , 19 for me, Taxman!") John Lennon left England and moved to New York, taking ALL of his income with him. So he was paying 50% taxes to the US, and no taxes at all to England.
A more accurate statement would be that only a few states (7) don't collect income taxes. Most of the states that don't have an income tax have much higher property taxes, sales taxes, and other taxes to make up the difference.
Linear taxes is the situation when the average tax rate is 20%. When this happens the tax rate will not increase with a higher income.
It depends on how the tax is structured. For example many many consider sales or gasoline taxes as regressive, because for low income groups -- it takes a higher percentage of their income to pay it. In the USA our income tax system is progressive, if you make more -- you pay a higher higher tax rate. (%). Please note, this is a simple answer to a complex question.
Higher payrolls affect taxes in several ways. First, higher payrolls lead to higher income tax percentages, requiring a person to pay more in taxes. Also, higher payrolls lead to more taxable objects, from property to sales tax.
One disadvantage to having a formal business is the fact that you will have to pay taxes. Taxes on businesses are higher than taxes paid on personal income.
microeconomics
Income taxes are taxes paid based on the amount of your wages and other forms of income, including but not limited to investment income, pensions, interest and dividend income, business income, rental income, etc. Income taxes are assessed by and paid to the federal government and, depending on where you live, also state and local governments. State taxes can come in many forms, including not only income taxes, but also property taxes, sales taxes, use taxes, excise taxes, business taxes, etc.