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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.