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By paystubs at 2022-01-11 • 0 collector • 222 pageviews

Tax brackets can seem like a burdensome social responsibility, especially when you get a raise. For people who are unclear on how it works in the United States, extra income could mean over taxation. However, because the United States operate a progressive tax system, tax brackets are not as bad you think.

What is a tax bracket?

A Tax bracket is a range for taxing taxable income according to increment in your earning in a progressive sequence. Essentially, the government taxes you per fractional dollar increment for the group or range of taxable income. In other words, different portions of your income incur taxation differently- The higher you earn, the higher your taxes.

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