Tax Brackets In Federal Income Tax

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Pages: 10
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Sabiha Rahman
PAD 343
Term Paper
Tax Brackets in Federal Income Tax The significance of federal income tax has increased as the years progress into the technological era, this is something that concerns all tax filers in the United States. We tend to come up with certain spectrums and analogical statistics that determine progression in our income taxes; in order to identify the percentage we follow the current Marginal Effective Tax Rate (METR) also known as tax bracket percentages, these numbers can appear to be imbalanced to both those who make higher incomes and to those who make lesser and figuring out how to make tax bracketing appropriate for everyone is a lot tougher than it sounds this system is what is also known as the progressive …show more content…
Your income is not taxed on a whole but it is taxed in portions if you have a $100,000 income you do fall under the 28% tax bracket but that does not mean you are taxed 28% of your annual income, you are taxed on your taxable income 10%, 15%, and 25% each bracket is taxed separately after your deductions have been made. Tax deductions are one of the blessings of filing taxes because this is what helps lower taxes. What tax deductions do is that they lower your taxable income when you file. There are two major divisions of tax deductions which are standard deductions and itemized deductions. The standard deduction is what everyone who files taxes is granted by the Internal Revenue Service. Itemized deductions are categorized into many different attributes such as :
• Medical, dental, prescription drugs, and health care costs
• State and local income taxes or sales …show more content…
According to Reuters “Burger King could avoid $117 million in U.S. taxes by never having to pay corporate income tax on foreign profits it holds offshore.” This will save the corporation about $275 million. Also Burger King is noted as a “top food supplier to the U.S. armed forces and its "decision to become a Canadian company will mean that while U.S. military families support Burger King by buying its food, Burger King will no longer support service members by paying its fair share of
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