No matter what stage of life you are in, it can be useful to know which tax bracket you or your business is in. Whether this knowledge is used for planning your budget, or just curiosity, you can find it out. Learn how your income influences the taxes you pay.
Depending on where you life, the taxes are influenced by different factors. Each country has its own set of rules and regulations on how they are run. Depending on the country, the tax rates change from time to time. In South Africa, they changed the tax brackets for 2012, but these rates remained the same the following year. New Zealand has had the same tax brackets since October 1, 2010.
In the United States, there are often changes, even if they are minor, in the tax brackets. There has always been much debate in the country on how the tax brackets should be managed. For some, they think that the taxes should be spread out more evenly across all the classes, a set percentage no matter your income. In this method, those who have the most money would still pay more than others, but less than in some of the other suggestions on tax rates.
The last changes to the tax rates in the United States happened on January 1, 2013. During the Bush administration, there was a tax cut for those making over four hundred thousand by themselves, or four hundred fifty thousand as joint filers. In 2013, congress allowed that cut to expire.
Currently there are seven tax brackets ranging in percentage of taxes to be paid. They are distinguished by the percentage of taxes that is required. They are:
In 2012, the tax brackets had lower thresholds. In theory, now people will be paying fewer taxes for the most part, except for the highest bracket. In 2013 the final tax bracket of 39.6% was added for those who made a lot more than the average American.
Back in 1993, the tax brackets for 36% and 39.6%, which was taken away and then reinstated, were added. There have been many changes to how the tax brackets function. Sometimes adding more, while other times adding less. It depends on who is in office during that year, but that isn’t the only factor.
Corporate taxes are given on the federal level. This tax holds for all organizations that function as a corporation. There are certain situations where a company has elements of being tax exempt, but this is usually only true of those who have some sort of affiliation with the government. Other companies aren’t taxed on the corporate level because they aren’t private. Because of this, their shareholders pay taxes individually for them.
Tax brackets are continually changing. There is no steady pattern to watch where the shifts are occurring. When the major changes occur, be aware of the tax bracket you fall into. Don’t be left in the dark when it comes to your money. If you are invested in any business, or just want to track your income, find out all you can about your tax rates.
Image courtesy of Stuart Miles / FreeDigitalPhotos.net
In a world that's constantly evolving, so are the strategies of top brands. We're talking…
A strong company culture inspires teamwork, unity, and friendly competition. It installs the ‘at your…
Companies store sensitive information digitally almost every day. But unfortunately, it also increases the risk…
When you have an idea for a business, you’ll want to get started right away.…
When business concludes that they need a collection agency up their sleeve, it is imperative…
The FP Top Pick on Entrepreneur/Business Movie: https://www.youtube.com/watch?v=uM5DrGTClyA Watch the movie Crypto here. More movie links…