15 Facts About United States Taxes System

15 Facts About U.S. TaxesBy: John J. Bowman, Jr.

The IRS is the U.S. government agency that is responsible for collecting

taxes and enforcing revenue laws. This agency

is part of the U.S. Department of the

Treasury.

Tax Returns

Every year the IRS receives over 140 million individual tax returns. In total, they collect over $950 billion in taxes.

Over $325 billion in tax refunds are paid out each year. The

average tax refund is $2,953. Keep in mind that a large tax

refund suggest that you had to much money withheld from

your pay or you made estimated tax payments that

were too large. In a sense, it is money that you loaned to the

government interest free.

Income Distribution

More than 40,000 Californian residents reported over $1 million in income, the most of any state. Vermont, on the other hand, has less than 300 millionaires.

Electronic Filing

Electronic filing is now nearly a universal practice. Almost 90% of individual tax returns are e-filed.

The Tax Code Is Expansive

The tax code is extremely wordy, with about 4 million words in all.

Continually Changing

The tax code is continually changing. There has been more than 4,500 changes since 2001.

Tax DeductionThe biggest tax deductions are those for taxes paid to the state and local governments. After that, taxes paid for interest is the next highest, especially on home mortgages.

The word ‘tax’ derives from the Latin word taxo, which means “I

estimate.”

Do You Cheat On Your Taxes?

Around 90% of Americans who employ a housekeeper and babysitter cheat on their taxes.

The United States has a progressive tax system. This means that the more money a person makes,

the more he or she pays in income taxes.

Progressive Tax System

The top 20% of all income earners in the United States pay about 86% of all federal income taxes.

It’s Expensive

As a whole, Americans spend over $27.7 billion each year doing their taxes.

It’s Time Consuming

Americans spend over 7.6 billion hours complying with federal tax requirements.

One Of A Kind?

The United States is the only nation in the world that tries to tax citizens on money they earned in foreign countries.