It’s safe to say that many Americans are a bit fuzzy on how taxes work and how much they actually pay. A 2018 Gallup poll, for instance, found that 45% of respondents said they believe they pay too much in federal income taxes. Interestingly, however, approximately 47% of Americans don’t pay any federal income taxes. You probably do know that the more money you earn, the higher the rate at which you are taxed. That’s because the U.S. follows a progressive tax system, in which different levels of income correspond to tax brackets of various rates. According to 2021 brackets, …
Source: Money
