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China's rubber-stamp parliament: 3 things you need to know

Wednesday, March 4, 2015 8:26 pm

Three thousand delegates have gathered in Beijing to kick off China's annual rubber-stamp parliamentary meetings.

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  • What Does The Term "Tax Bracket" Mean?

    Monday, April 11, 2011

    The income tax laws are complex and constantly changing.  Yet, there is one theme that is constant and its understanding may help you identify ways to reduce your tax bill.

    The U. S. tax laws are built around a progressive, marginal rate structure.  Simply speaking, this means the higher your income, the higher the rate of tax you pay on your incremental income.

    Think of our tax system like stair steps.  Each step represents a “bracket” of income that is taxed at a certain rate.  The higher you go, the higher the tax rate on the income in that bracket.  “Segments” of income at lower levels are taxed at lower rates and “segments” of income at higher levels are taxed at higher rates.

     Here are the “brackets” and rates for 2011 tax returns.

     Income Tax Rate Schedules for 2011

    2011 Single Return Rate Schedule

     

    2011  Married Filing Jointly Rate Schedule

    Taxable income levels

    Tax rate

     

    Taxable income levels

    Tax rate

    0 to $8,500

    10%

     

    0 to $17,000

    10%

    $8,501 to $34,500

    15%

     

    $17,001 to $69,000

    15%

    $34,501 to $83,600

    25%

     

    $69,001 to $139,350

    25%

    $83,601 to $174,400

    28%

     

    $139,351 to $212,300

    28%

    $174,401 to $379,150

    33%

     

    $212,301 to $379,150

    33%

    Over $379,150

    35%

     

    Over $379,1500

    35%

    There is a great deal more to our income tax laws like the definition of taxable income, deductions, alternative minimum tax and lots more.  Discussing your tax situation with your tax advisor may help you identify ways to take advantage of this marginal rate system and keep your taxes as low as possible.

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