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Taxes

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					Taxes
Look and Listen
              Income
National and State

    - On money you earn
               Tax Bracket
Where tax brackets come from
• Congress establishes tax rates that apply to
  different levels of taxable income. Current law
  provides rates from 10% to 35%.
• The higher your income, the higher your tax
  rate.
• The range of income where you stay at any
  particular rate is known as a tax bracket. For a
  single person in 2008 the rate on taxable income
  between $32,550 and $78,850 is 25%, so those
  numbers establish the 25% bracket.
                       Single
 Taxable                                      Of the
            But not
income is              The tax is   Plus     amount
             over
  over                                         over

       $0      8,025        $0.00      10%         $0
    8,025     32,550      802.50       15%      8,025

   32,550     78,850     4,481.25      25%     32,550

   78,850    164,550    16,056.25      28%     78,850

  164,550    357,700    40,052.25      33%    164,550

  357,700              103,791.75      35%    357,700
 $32, 550
x .25 (25%)
 $8,137.50
              Sales Tax
• State or city

    - On money you spend
         Corporate Tax
• Tax on company profits (money they
  make)
            Property Tax
• State or city
  – On the value of the home you live in
          Investment Tax
• Federal and State
  – On the stocks, bonds, and other
    investments you sell
The wealthy should pay a larger
 proportion (amount) of income
      taxes than the poor.

				
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posted:10/26/2011
language:English
pages:18