Tax Taxes And Income Taxes

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Everyone gets frustrated with income taxes and everyone complains that they are paying more than enough, but who really pays more in federal income taxes? Having a progressive tax system; meaning that the more money you earn, the more you will have to pay in taxes; would lead to the rich paying for most of the taxes and not the poor. Unfortunately, many people do not realize some of the problems with the tax system itself that offsets the balance as well as the results when it comes to taxes. There are many unseen things when looking at no more than just the statistics of who pays the most in taxes. Anything from the tax rates, the difference between federal and individual income taxes as well as state taxes can create a problem when…show more content…
“Many taxes are regressive, meaning they take a larger share of income from poor and middle-income families than they do from the rich.” (2015, 3) Along with the federal income taxes, Americans pay for state and local taxes also, seven states are excluded from the state taxes. Federal income taxes take up the majority of what Americans pay in taxes, (accounting) for two-thirds of all taxes paid by Americans. (All in all) forty - three states levy individual income taxes, forty - one tax wage and salary income, two states exclusively tax dividend and investment income while seven states levy no state income taxes. The seven states that have no state income taxes includes: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. (Fact Check, [3]) Federal income tax and local sales taxes would be the only source of taxes these states would need to pay. Unlike the federal income taxes, the state taxes are regressive meaning that they take more income from low and middle-income families and individuals rather than from the wealthy. Three of the most regressive states for state income taxes are Washington as number one, Florida in second and Texas ranked number three with the low-income families paying twelve and a half percent and the wealthy paying only three percent. Taxes that are truly causing a problem would be the state income taxes,
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