Income Tax Research Paper

Ever since the beginning of the income tax, a debate has sparked about how much money different levels of income should pay in tax. "The Government taxed personal income for the first time in 1862, to help finance the Civil War(1861-65), Congress imposed a 3% tax on income of more than $600 a year and 5% on income more that $10,000 a year. The income tax was repealed after the war ended"("Extending Tax Cuts", Page 3). Today, we are using the money for the same reason, and many public services. For example parks, roads, and schools. Everyone who makes a living in the U.S. is expected to contribute a portion of their salary to the federal government in the form of taxes. That money is used by to fund the day-to-day operations of the federal …show more content…
One of the biggest political problems in the United States is whether to increase or lower the taxes on the wealthy. Different levels of income have to pay different percentages of tax. "Married couples filing jointly that make more than $373,650 are taxed at 35%. Prior to the 2001 tax cut, the top tax bracket consisted of more than $288,250, and paid 39.6% on that income. The next bracket starts at $209,250-$373,650 and people that make this get taxed at 33%. Before the Bush tax cuts this bracket would be between $161,450 ad $288,350 and they would get taxed at 36%. After that bracket, incomes between $137,300 and $209,250 are taxed at 28%. They used to be at $105,950-$161,450 and got taxed at 31%. Then to the next bracket where if you make $68,000-$137,300, you get taxed 25% If you make $16,750-$68,000 you get taxed at 15% on that income. This used to be the last bracket, but The bush cuts added a new one. The new bracket is between $0-$16,750 and the tax is 10%"("Extending Tax Cuts", Page 4). In 2001 these tax brackets were made by George W. Bush. This suggests how much percentage people should