subject: The Various Federal Tax Facts [print this page] Federal taxes are the taxes that are paid by the individuals to the government. Payment of these taxes by the taxpayers takes place every year. These contributions are made by people who are employed. The amount that one has to pay will depend upon his incomes and some other factors.
The funds collected by the gvebrment are used for developing countrys infrastructure and also initiate other national activities. Federal taxes are not only applicable to the individuals but also to some business entities. Apart from federal taxes, taxpayers also need to pay state taxes to their respective state governments.
Federal taxes can be proportional, progressive or regressive model. The most adopted model is however the progressive model. Under this model, an individual has to pay taxes on the income that he earned in the previous year. Usually, the higher the income earned, the higher will be the tax that one has to pay.
In US, the tax rates are usually between 10 and 35 per cent of the taxable income. The civil status as well as the number of dependents will also be taken into consideration while determining the tax rate of an individual.
Those who fill federal tax commonly fill out tax forms 1040EZ or 1040A. Tax payers are advised to fill shorter versions of these forms if possible in order to save paperwork as well as time.
Most of use view taxes as a burden; however these are must in order to keep the state running.
by: Alden Stuart
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