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Just as it is an obligation and duty to pay taxes when the season comes for all United States citizens, so should it be an obligation to know how the system works and why and by how much the government taxes their income.
So it's not just about paying and at best waiting for a refund or some credit, and yes, it's about getting to know in depth an inevitable issue, but in order to take advantage of what can be taken advantage of so that the drink is not so bitter.
There are many people who consider that the taxes they pay each fiscal year are too high, and many more who do not understand how the tax collection system works, as well as the famous 'tax brackets'. Here we explain it to you.
Who pays more and who pays less?
The situation is less complicated than it seems, and contributes to an irrefutable truth that obeys a balance that is rarely within the reach of the majority: tax experts explain that the tax system is designed to be progressive, which means that lower-income Americans pay a smaller proportion of their income in federal taxes than higher-income workers. It is, therefore, elementary justice.
In other words, higher-income households pay almost all federal income taxes, and the Tax Foundation explains this with the force of numbers, as the top 10% of income earners pay approximately 72% of national taxes, at an average effective tax rate of 26%, while the bottom 40% pay approximately 4% of their income to the IRS, according to the foundation, based on 2022 tax data and the latest figures available from the Internal Revenue Service (IRS).
What is the tax rate?
The so-called tax brackets determine how much people pay the IRS each year, but only a portion of a person's income is subject to their maximum tax rate, contrary to the belief that this applies to all of their income in the year.
Americans are taxed according to seven tax brackets, which represent the percentage paid in taxes on each portion of income, but taxpayers generally have a lower effective tax rate than their maximum tax rate, which only applies to income that falls within that bracket.