I know that the more money you make the higher the percentage, but is that all there is to it? How do the rich manage to not pay as much? Or do they pay as much?
In: Economics
The top 10% of wage earners in the US pay 90% of the federal income taxes that are collected in the US. The rich pay the highest tax rate, even though popular social media and news outlets like to portrait that they don’t. The fact is, they do, period.
Essentially the US works on a system where the more you make, the more you pay in taxes, and they do this in brackets.
There are seven federal tax brackets for the 2020 tax year: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your bracket depends on your taxable income and filing status.
https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
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