Why taxes

In the case that April 15 falls on a Saturday, Sunday or holiday, Tax Day becomes the first succeeding business day after that date. How are taxes calculated? The federal income tax system is designed to be progressive, which means the more taxable income you make, the higher the tax rate. Taxpayers can often reduce the amount of tax they owe by using various tax credits, deductions and exclusions or loopholes.

In , taxpayers in the top tax bracket income level paid a tax rate of Nearly 80 percent of U. When you earn enough income to put you into a higher tax bracket, only the extra income in that bracket is taxed at the higher rate, not all of your income.

For individuals in the highest tax bracket, their first dollars of income are taxed in the lowest bracket, and they go up from there. Taxes are essential for provision of government services. Video of the Day. Treasury: History of the U. Those who have supported the tax cuts typically deny that the tax cuts have had anything to do with this deteriorating budget outlook. In fact, many have argued that revenues would have been lower without the tax cuts, i.

Thus, contrary to the view that the tax cuts were neutral or even beneficial, the tax cuts have been a huge factor in the deterioration of the year outlook and our currently high and rising deficits.

Unfortunately, the goal of cutting in half the huge deficit created during this administration is a bit like a retailer marking up prices just before a sale. Finally, the argument that tax cuts grow the economy, while tax increases shrink it, is incomplete and incorrect. Many loan companies require you to submit your Income Tax Return ITR and without it, your loan application may be rejected.

Paying taxes is an essential duty of every working American citizen. It's extremely important to make sure your tax calculations are done correctly to avoid any IRS investigations. Credit Cards. Why Are Taxes Important? In short, taxes have a direct influence on economic and societal welfare. What Is a Tax? Why Do People Get Taxed? How Do Taxes Help Society? Tax Brackets in the US. How to Calculate Tax.