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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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Record Federal Income Tax Receipts Still No Match For Cost Of Regulation Com...
Competitive Enterprise Institute blog Record Federal Income Tax Receipts Still No Match for Cost of Regulation Competitive Enterprise Institute blog The big news, headlined on the Drudge Report, is that federal individual income tax collections have hit an all time high. The Treasury reported that fiscal year 2017 individual income tax revenues through July or, 10 months of the fiscal year stand

Is Interest On Home Equity Borrowing TaxDeductible NerdWallet Blog
Is Interest on Home Equity Borrowing Tax Deductible NerdWallet blog In fact, the deduction dates to 1913, when few people had mortgages. It was implemented with the adoption of the 16th Amendment to the Constitution, which created a federal income tax. Later, when homeownership became more widespread, the deduction and more raquo

Hewlett Packard Enterprise Deal Faces Inversion Penalties Bloomberg BNA
Hewlett Packard Enterprise Deal Faces Inversion Penalties Bloomberg BNA Willens said the companies seem to have avoided the most serious penalty, which would transform Micro Focus into a domestic corporation for U.S. federal income taxes purposes. Such would be the case if the Seattle SpinCo shareholders are treated as

Former El Dorado Mail Carrier Enters Plea To Identity Theft Magnoliareporter
Magnoliareporter Former El Dorado mail carrier enters plea to identity theft Magnoliareporter From January 2010 until December 2012, Hearns conspired with Venus Ford, Whitney Charles, and others to fraudulently obtain money from the U.S. Treasury by filing false federal income tax returns in the names of others without their knowledge or consent.

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Facts of Law about the federal income tax

Facts of Law - Federal Income Tax