How Your Tax Rate is Determined

IRS Tax Debt Help!

[adsenseyu1]

Could you be a 15-percenter? A look at factors that determines your tax rate

It seems everyone is talking about the huge disparity between the tax rates that the rich pay as opposed to the rest of us.   Why is it that many, if not most of the wealthy people pay not much more than 15%   while the rest of us pay upwards of sometimes 35%.

 

Are there ways to reduce your taxes amount you owe? It just is not fair and many things need to change soon so that the average taxpayer in this country has a more equitable tax rate.

Here is a great article talking about just this point.

Decoding Tax Rates

By Candice Choi, AP Personal Finance Writer | Associated Press  aE”  Wed, Jan 25, 2012 5:37 PM EST

Mitt Romney released records this week that show he pays a tax rate of about 15 percent of his income. The relatively low figure is raising eyebrows because it’s on par with the rate paid by many middle-class households. That’s despite the Republican presidential candidate’s impressive income of $45 million over the past two years.

The disparity seems to fly in the face of the basic rule that tax rates move in tandem with wages; the more you earn, the more you pay. So Romney’s disclosure may stir suspicions that the system is tilted toward the rich.

In his State of the Union speech Tuesday night, President Barack Obama focused on the issue by noting that a quarter of all millionaires pay lower tax rates than millions of middle-class households.

“We need to change our tax code so that people like me, and an awful lot of members of Congress, pay our fair share of taxes,” Obama said in a speech that repeatedly touched on the gap between the rich and poor.

 

You can read the entire article HERE!

 

If you think that there needs to be a change in the way people pay their taxes, leave a comment below and letaE

About The Author

TK Bradley

tk bradley is a tax relief expert with many years of dealing with the irs and helping taxpayers to understand their rights and to settle their tax debt problems.