Essay: Amount of Income Taxes Collected
The amount of income tax collected from an individual or a given category of people may be affected by a number of factors. Taxes are normally imposed by a number of sub-national groups. The income bracket, the status of an individual in society, health status, age of persons, type of organization, and marital status are some of the factors that are utilized in determining the amount of income tax to collect from a person. Different income brackets are normally used in categorizing income payers (Marx 2007). Different taxes which exist differ with the extent of the tax incidence.
People’s Different Brackets of Income and Income Tax
The amount of income charged the income payers is determined by different factors. It is the law formulated that determines how much and from who a given tax is supposed to be collected within the stipulated time. Since the income tax is actually levied on businesses or individuals, the variations in people’s life factors also determine the income tax amounts collected. The income a person or an organization receives from the work they do determines how much income they would be charged (Marx 2007). Individual income tax is levied on the person’s total income. This implies that the higher the income the higher the income tax which the person would pay. The person’s actual earning is therefore considered as expenses subtracted from the gross revenue.