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The first thing to know about the U.S. tax system is that it is based on a progressive
income tax system, which means that higher income earners pay a greater percentage
of their income in taxes than those with lower incomes. The federal government
collects most of its revenue from individuals and businesses who earn money through
wages, investments, and other business activities.

Income Taxation

The federal government taxes all types of income earned by individuals and
businesses including wages, salaries, tips, bonuses, interest payments (including
capital gains), dividends (including capital gains), alimony payments (if reported as
taxable), prizes or awards for achievement in athletics or artistic performances; net
profit from business enterprises; certain types of non-business property; and certain
types of personal services such as wages or self-employment income. The amount of
each type of taxable income subject to the individual’s marginal tax rate depends on
whether the taxpayer has other sources of taxable income or filing status that may
reduce his/her tax liability below zero percent. For example: A single person with
$10,000 in taxable income would have an initial tax liability if he/she had no other
sources of taxable income but wouldCone is a structure that is present in the human
body. It has two major functions, which are to protect the eyes and to regulate body
temperature. Cone vision is an important part of our daily life as it helps us see objects
clearly. Without cone vision we would not be able to see colors or shapes clearly.