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The federal estate tax is computed on the sum of taxable estate and taxable gifts, and is reduced by prior gift taxes paid. These taxes are computed as the taxable amount times a graduated tax rate (up to 35% in 2011). The estate and gift taxes are also reduced by a major "unified credit" equivalent to an exclusion ($5 million in 2011).
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
The United States social insurance system is funded by a tax similar to an income tax. Social Security tax of 6.2% is imposed on wages paid to employees. The tax is imposed on both the employer and the employee. The maximum amount of wages subject to the tax for 2020 was $137,700. [61] This amount is indexed for inflation.
Taxes are indexed to wages and profits and therefore areas of high taxation are correlated with areas of higher per capita income and more economic activity. Spending is largely focused on areas of poverty, the elderly, and centers of federal employment such as military bases.
Poll taxes became a tool of disenfranchisement in the South during Jim Crow, following the end of Reconstruction. Payment of a poll tax was a prerequisite to the registration for voting in a number of states until 1965. The tax emerged in some states of the United States in the late nineteenth century as part of the Jim Crow laws.
Both employees and employers pay a 6.2% tax on wages up to a "taxable maximum" limit of $176,100 in 2025. That's a total of 12.4% of wages (self-employed workers pay the whole thing).
Progressive taxes are imposed in an attempt to reduce the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay. The opposite of a progressive tax is a regressive tax, such as a sales tax, where the poor pay a larger proportion [how?] of their income compared to ...
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