Tax tables are the income tax rates imposed on U.S. taxpayers.
Each year the federal government publishes an income tax table that lists the tax rates so that people can calculate their income tax. Income taxes accounted for just under half of the federal government's income in 2010.
Purpose
The federal income tax is a progressive income tax system which means that as you have more taxable income, the tax rate that you pay increases. For example, in a progressive system the first $20,000 of your income may be taxed at 10 percent and the next $20,000 at 20 percent.
Types
The federal income tax tables include charts for each filing status: single, head of household, married filing separately and married filing jointly. The first time different tax filing status were used was 1949.
Adjustments to Tax Rates
The federal tax rates can be adjusted by passing new federal legislation. For example, it would take an act of Congress to increase the tax rate from 10 percent to 15 percent.
Adjustments to Tax Brackets
The amount of income in each bracket is adjusted each year for inflation by the IRS. For example, the Internal Revenue Service (IRS) is responsible for determining how much income is subjected to each tax rate, such as whether to tax the first $10,000 or $11,000 at 10 percent.
Fun Fact
President Franklin Roosevelt attempted to impose a 100 percent income tax on all incomes over $25,000 by executive order, but it was quickly overruled by Congress.
Tags: federal government, federal income, filing status, married filing