How Tax Brackets Work ?

I don’t know about tax systems in every country in the world. But i know that the USA has a progressive tax system. Which means that people with higher taxable incomes pay higher federal income tax rates. 

So if someone tells you that the rich pay less taxes than the middle class and the poor, don’t believe them because thats bull shit. There are a lots of evidence that the rich pay more in taxes than the middle class and the poor. If you want to see the evidence then click on the link to a clip from “The Ben Shapiro Show” which is about this topic of who pays more taxes.  With that being said let’s get back into the topic.

Being in a tax bracket doesn’t automatically mean that you pay the federal income tax rate on everything you make.

The progressive tax system means that people who have higher taxable incomes are subject to higher federal income tax rates. And people with lower taxable incomes are subject to lower federal income tax rates. Easy and simple.

The government itself decides how much tax you need to pay by dividing your taxable income into parts (also known as tax brackets) and then each part gets taxed at the corresponding tax rate.

The whole beauty with this is that no matter which bracket you’re in, you wont pay the tax rate on your entire income.

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