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Why do we pay more income tax as we earn more?

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The amount of income tax that you owe each year is based on your income level. The United States currently uses a progressive income tax system — which means that the more money you earn, the more taxes you have to pay. read more

The marginal tax bracket system is a gradual tax schedule, which basically translates to this: as you make more money, you pay more tax. The amount of taxable income that you earn determines which tax bracket(s) you fall into. read more

We pay taxes because the federal, state, and municipal governments enact tax laws. That tax revenue pays for government services. The federal government collects about the same as the state and local governments combined. Kinds of Taxes. Federal. The federal government tax revenue will be $3.6 trillion in FY 2018. Half comes from personal income taxes. read more

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