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Every adult in the world works hard to earn their keep. To be able to get something that they need in order to survive and stay in good health, people find jobs so they earn money, and where there is money and society, there are tax brackets.
In the modern world that everybody lives in, there are still parts of life that never change, such as the fact that there are some things in this world that are unfair. As time progresses, it is important to change such things by calling them out and taking the necessary actions to make a difference. In the book Thoughts of an American Taxpayer, author Gary Williamson talks about how in the current economy, “you cannot buy jobs for the long term but can temporarily, especially with thousands and millions of American taxpayers’ dollars.”
More importantly, Gary Williamson questions the government about where the people’s money is heading, quoting: “Our government seems to be run so poorly that they cannot tell us what these taxes are being spent on. I believe this is due to poor and improper oversight with no independent accountability, transparency, or responsibility. They believe they do not have to answer our questions and be accountable to us for their irrational and irresponsible spending and actions. When in the hell is all the money going?
With that said, as hard as people work every day, not just for themselves but also for their loved ones, it is only fitting that the people who pour their blood, sweat, and tears know where all their hard work is going, right? That is why it is important to become knowledgeable in such areas, especially as it can affect anyone and everyone.
First, let us define tax brackets. Tax Brackets are a range of incomes subject to the same income tax rate. For the majority of the population, it is a pretty common misconception that a person’s tax bracket is a representation of how much of their income they will have to pay in federal income tax. This blog article will clarify to readers that that is not how tax brackets work.
In America, the tax system is progressive with rates that are always ready to rise along with a person’s income, so the higher the income, the higher the tax bracket. In fact, nobody really pays any attention to the top tax bracket percentage on every dollar of their taxable income. Most of all, it’s a much lower amount.
Here is an example: Mark just landed himself a great job that makes $90,000 a year. As he checked with the 2023 IRS tax brackets for single filers, he felt a little alarmed to see that his income belonged to the 22% tax bracket. Such instances can connect with what Gary Williamson stated in his literary work where he said, “Most government employees belong to unions and are breaking the federal and state government by wasting the American taxpayers’ dollars on special benefits. Why in the hell are government employees/politicians receiving better benefits than the American taxpayers paying for them?”
With that statement alone, it can lead to another question: who will get a certain percentage of Mark’s hard-earned money? Mark should not panic, as here are the different types of tax rates:
Tax Rate
This is a percentage of a person’s income that the government claims for taxes.
Marginal Tax Rate
This is the rate you’ll pay on your last and highest dollar of income.
Effective Tax Rate
This is the actual percent of your gross income that you pay once you’ve deducted the necessary deductions and taxes from your income.
Here’s another important visual as to how tax brackets work:
Think of income ranges falling into buckets. Every bucket holds a different amount of money being taxed at a different rate. When one bucket fills up, a person’s income spills over to the next, and so on.
Despite all this, while yes, indeed, these are all a must to learn about, it is a must to fight for what is right and not be complacent when it comes to how taxes work and, most of all, where it goes. As Gary Williamson states in his book, “We need to face the fact that the government is very wasteful at all levels, and the only taxes we should be sending them are for national security, defense, border patrol, and other national projects to benefit all Americans, not their own agendas as and pet projects.”
For those who want to learn more about important matters that affect everyone, get a copy of Thoughts of an American Taxpayer by Gary Williamson, available in paperback, hardcover, and eBook on Amazon, Barnes & Noble, and ReadersMagnet Bookstore.
