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Facts - Books - News    U.S. Facts Of Law:


Federal Income Tax

Federal income tax accounts for the majority of the income collected by the federal government.  It is collected both from individuals, corporations and some other entities.  The federal income tax system is a progressive system of higher tax rates on higher income earners.

Income taxes are collected by employers through out the year through a mandated payroll withholding system.  The withheld taxes are deposited with the Internal Revenue Service (IRS) under the employee's name.  When the employee files his federal income tax return he is credited for the amount of taxes collected by his employer.  If the taxes collected were less than owed, the employee sends in the difference with his income tax return.  If he over paid, the government will issue a refund to the employee.  The IRS does not pay interest to the employee on the money it holds for him.

Over the years, Congress has fiddled with the tax code to provide incentives to make certain investments or for corporations to develop certain products.  Examples include the income deduction for interest paid on a mortgage and the income deferral on money placed in an approved retirement plan.

Congress has also made the federal income tax a progressive tax.  As an income earner's taxable income increases, so does the rate at which it is taxed.  Believing the wealthy should bear the burden of paying most of the taxes, Congress has skewed the tax code against them.  The IRS reports that the 2005 tax data shows:

Income Earners — Pays This Percentage of All Personal Income Taxes
Top 1% ———–———– 38.8%
Top 20% ——————– 86.3%
Top 40% ——————– 99.4%
Bottom 60% —-———– 00.6%

It is obvious from this data that those making over $60,000 per year (approximately the top 40%) pay nearly the entire income tax burden.

 

Federal Income Tax Best Sellers from Amazon.com

Federal Income Tax Examples & Explanations
by Bankman, Joseph
Amazon Price: $35.51
Customer Review: I struggled all semester long with Tax I. I purchased Examples and Explanations because I'd had good experiences with other topics before. As soon as I started reading the E&E along with my class assignments (or in place of them), it all came togethe...
 
Every Landlord's Tax Deduction Guide
by Stephen Fishman J.D.
Amazon Price: $26.39
Customer Review: I got this book for information on what kind of tax deductions I can take with my house rentals, it is very easy to read and understand. I would, and have recommended this book to my friends.
 
The Fair Tax Book: Saying Goodbye to the Income Tax and the IRS
by Neal Boortz, John Linder
Amazon Price: $10.19
Customer Review: This great book simply lays out a concept extensively researched and simple to enact that will replace our current income tax based system by a national sales tax- the type our Founding Fathers intended. It is a very persuasive book because it is ba...
 
Income Tax Fundamentals 2010 (with TaxCut Tax CD-ROM)
by Gerald E. Whittenburg, Martha Altus-Buller
Amazon Price: $113.27
Customer Review: I think this textbook and workbook is great. It gives you a lot of real-life examples as well as a lot of practice problems to apply what you've learned. The biggest drawback for this product is that it is a hassle to get your hands on a copy of th...
 
J.K. Lasser's Your Income Tax 2010: For Preparing Your 2009 Tax Return
by J. K. Lasser
Amazon Price: $8.90
Customer Review: The book is well organized and cover topics thoroughly. The language is quite easy to understand. The book is quite large so i only read the sections that i needed to but it has information for everyone.
 

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Federal Income Tax News
GN News

In American Politics, Stupidity Is The Name Of The Game Washington Post
In American politics, stupidity is the name of the gameWashington PostThe other, from February, used Internal Revenue Service data to show that the effective federal income tax rate for the 400 taxpayers with the very highest and more raquo

What Happens If The Bush Tax Cuts Expire Wall Street Journal
The Business InsiderWhat Happens if the Bush Tax Cuts ExpireWall Street JournalAfter counting deductions and exemptions, says the IRS, the typical middle income family is actually paying less than 10 of gross income in federal income A Tax Time Bomb Ticks Away Under DemocratsSunshine State News3rd District Race: What to do with Bush tax cutsLongview Daily News39The Long Term Budget Problem Is 100 Percent Spending39The Atlantic blogWashington Times MarketWatch AOL Newsall 144 news articles raquo

Add Tax Cut To Offset Increase In Federal Gas Tax USA Today
Add tax cut to offset increase in federal gas taxUSA TodayThis way, the financial blow from increased gas taxes would be offset by a cut in the income tax. Aside from that, we should plow a portion of gas tax

Fact Check: Whitman Capital Gains Plan Questioned BusinessWeek
Fact check: Whitman capital gains plan questionedBusinessWeekYet the state relies on income taxes more than most other states, in large part because Californians capped property tax assessments in 1978, Auerbach said. and more raquo

The Weekly Market Snapshot From Frazier Allen Clarksville Online
The Weekly Market Snapshot from Frazier AllenClarksville OnlineWhile interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, state or local and more raquo

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