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Then the tax reform act of 1986 claiming that it was a two tiered flat tax expanded the tax base and dropped the top rate to 28 percent for tax years beginning in 1988.
Income tax rates by year united states. Personal income tax rate in the united states averaged 36 71 percent from 2004 until 2020 reaching an all time high of 39 60 percent in 2013 and a record low of 35 percent in 2005. The economic recovery tax act of 1981 slashed the highest rate from 70 to 50 percent and indexed the brackets for inflation. While most states use a marginal bracketed income tax system similar to the federal income tax every state has a completely unique income tax code. United states has a bracketed income tax system with six income tax brackets ranging from a low of 10 00 for those earning under 8 375 to a high of 35 00 for those earning more then 373 650 a year.
4 the hype here was that the broader base contained fewer deductions but brought in. Most state governments in the united states collect a state income tax on all income earned within the state which is different from and must be filed separately from the federal income tax.
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