2007-01-08 12:13:15 · 3 answers · asked by ZIMBINI X 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
A complex one. In fact, the Federal Income Tax is so complicated that even the IRS makes mistakes - but you're expected to understand it and comply with all its provisions.
2007-01-08 12:17:42 · answer #1 · answered by jack w 6 · 0⤊ 0⤋
In general terms it is a graduated income tax system. The graduations are based on income with the lowest income paying 5% and the highest incomes paying 50%...so people like Jay Leno and Bill Gates give 50% of their huge incomes to the government.
The complications come into play in the income classification and deductions areas. There are many rules governing how to classify the type of income (investment, wages, sale profits, inheritance...etc.) because different types of incomes have different rates. Similarly there are many rules governing deductions, how much can be deducted from the gross income for what by whom.
Many will tell you our tax is too high but in fact we pay the lowest percentage in the industrialized world. That's why all the English rock stars moved here in the 1970's...to avoid the 75% tax in England..."cause I'm the Taxman...yeah the Taxmaaan".
2007-01-08 20:31:17 · answer #2 · answered by Perry L 5 · 0⤊ 0⤋
it's the OVER-TAXATION system
2007-01-08 20:19:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋