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• Taxes are charges enforced by government-bodies on income, property, products and activity. There are two types of taxes, a direct tax and an indirect tax. The direct tax is generally paid by an individual or entity directly to the government. An indirect tax is generally paid to an intermediary by an individual or entity. The intermediary then distributes those funds to the government.

• Fast Facts

  1. Examples of direct taxes: Property tax, income tax and capital gains tax
  2. Examples of indirect taxes: Sales tax, goods and services tax
  3. Taxes fund government spending
  4. Public goods, such as public roads, public parks, schools and hospitals are funded by taxes
  5. Taxes can be used to allocate money from the rich to the poor
  6. Taxes can be used to dissuade activity, examples of such taxes are the pollution tax and the tax on cigarettes

• 2007 U.S. Federal Tax Bracket

  • $0 - $7,825: 10%

  • $7,825 - $31,850: $782.50 plus a 15% charge on income over $7,825

  • $31,850 - $77,100: 4,386.25 plus a 25% charge on income over $31,850

  • $77,100 - $160,850: $15,698.75 plus a 28% charge on income over $77,100

  • $160,850 - $349,700: $39,148.75 plus a 33% charge on income over $160,850

  • $349,700 - no limit: $101,469.25 plus a 35% charge on income over $349,700

  
  

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  How to Check Your State Tax Refund Status | How to File Your Taxes | Capital Gains Tax | Interest Rates | Federal Funds Rate | United States | IRS | How to Do Your Taxes | How to File Taxes Online for Free | How to Spend Your Tax Rebate | Tax Reform | George W. Bush | iPod Tax | How to Manage a 401(k) | How to Form an S Corporation | What are some good ways to lower my property tax bill | What is a split refund | How do I request a copy of my tax return for last year | What are "Estimated Taxes" and when are you required to pay them | Where can I find a Turbo Tax Coupon | What's the best online tax preparation software | How to Get Your Georgia State Tax Refund | How to Get Your Ohio State Tax Refund | How to Avoid Common Tax Mistakes | How File Your Taxes Using eFile | How to Get Tax Breaks | How to Get a Tax Refund Loan | How to Pay Your Taxes Online

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