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Facts - Books - News    U.S. Facts Of Law:

Federal Income Tax

Federal income tax accounts for the majority of the income collected by the federal government.  It is collected both from individuals, corporations and some other entities.  The federal income tax system is a progressive system of higher tax rates on higher income earners.

Income taxes are collected by employers through out the year through a mandated payroll withholding system.  The withheld taxes are deposited with the Internal Revenue Service (IRS) under the employee's name.  When the employee files his federal income tax return he is credited for the amount of taxes collected by his employer.  If the taxes collected were less than owed, the employee sends in the difference with his income tax return.  If he over paid, the government will issue a refund to the employee.  The IRS does not pay interest to the employee on the money it holds for him.

Over the years, Congress has fiddled with the tax code to provide incentives to make certain investments or for corporations to develop certain products.  Examples include the income deduction for interest paid on a mortgage and the income deferral on money placed in an approved retirement plan.

Congress has also made the federal income tax a progressive tax.  As an income earner's taxable income increases, so does the rate at which it is taxed.  Believing the wealthy should bear the burden of paying most of the taxes, Congress has skewed the tax code against them.  The IRS reports that the 2005 tax data shows:

Income Earners Pays This Percentage of All Personal Income Taxes
Top 1% 38.8%
Top 20% 86.3%
Top 40% 99.4%
Bottom 60% - 00.6%

It is obvious from this data that those making over $60,000 per year (approximately the top 40%) pay nearly the entire income tax burden.


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Federal Income Tax News
GN News

How The Trump Tax Plan Could Lure Chris Paul To The San Forbes
Forbes How The Trump Tax Plan Could Lure Chris Paul To The San Forbes NBA free agency is about to kick off. Could a proposed change to the tax law impact where players will sign and more raquo

Here Is Warren Buffettaposs First Tax Return, Filed At Age 14 PBS NewsHour
PBS NewsHour Here is Warren Buffett39s first tax return, filed at age 14 PBS NewsHour You might wonder why a 14 year old would have to file a federal income tax return. Well, Buffett made more than 500 and IRS rules at the time required that a return must be filed by every citizen of the United States, including a minor, who had earned and more raquo

Obama Blasts GOP Senate Bill As Tax Cut For The Rich At Health Careaposs Expe...
The Hill blog Obama blasts GOP Senate bill as tax cut for the rich at health care39s expense PolitiFact It39s a bit hyperbolic to say everybody39s health care would be cut to finance the tax cut it39s mostly lower income people who lose out as a direct result of the bill. He39s right that the Senate bill would deliver a tax cut as it reduces the amount of Budget estimate shows GOP bill is about tax cuts for rich, not healthcareThe Hill blog The Senate Leadership39s Health Bill Is A Big Tax Cut, Especially For The Top One PercentForbes Abbreviated Pundit Round up: How to sell the health bill Lie about it.Daily Kos Chicago Tribune Journal of Accountancy The CT Mirror all 9,948 news articles raquo

Republican Senate Healthcare Bill Creates Scary Marginal Tax Rates Forbes
Forbes Republican Senate Healthcare Bill Creates Scary Marginal Tax Rates Forbes BCRA imposes high marginal tax rates on many Americans. In combination with the federal income tax, the federal payroll tax, state taxes and other benefits that may depend on income, the BCRA could push total marginal tax rates for many Americans well

CORPORATE CLOSE UP: THESE STATE TAXES DON39T PASS THROUGH Bloomberg BNA Wisconsin imposes an economic development surcharge tax at the entity level on publicly traded partnerships treated as C corporations for federal income tax purposes and S corporations, as well as RICs and REITs that are treated as C corporations or S and more raquo

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Facts of Law about the federal income tax

Facts of Law - Federal Income Tax