A report on Income tax

Top marginal tax rate of the income tax (i.e. the maximum rate of taxation applied to the highest part of income)
William Pitt the Younger introduced a progressive income tax in 1798.
Punch cartoon (1907); illustrates the unpopularity amongst Punch readers of a proposed 1907 income tax by the Labour Party in the United Kingdom.
General government revenue, in % of GDP, from personal income taxes. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 27 % by tax revenue
Systems of taxation on personal income
Payroll and income tax by OECD Country

Tax imposed on individuals or entities in respect of the income or profits earned by them (commonly called taxable income).

- Income tax
Top marginal tax rate of the income tax (i.e. the maximum rate of taxation applied to the highest part of income)

32 related topics with Alpha

Overall

Average tax rates by income groups in France, the United Kingdom, and the United States, 1970 (left) and 2005 (right). Taxes were more progressive in 1970 than in 2005.

Progressive tax

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Tax in which the tax rate increases as the taxable amount increases.

Tax in which the tax rate increases as the taxable amount increases.

Average tax rates by income groups in France, the United Kingdom, and the United States, 1970 (left) and 2005 (right). Taxes were more progressive in 1970 than in 2005.
A caricature of William Pitt the Younger collecting the newly introduced income tax.
German marginal and average income tax rates display a progressive structure.
"Tax The Rich" banner at an International Union of Socialist Youth campaign for a financial transaction tax.
The function which defines the progressive approach to an income tax, may be mathematically defined as a piecewise function. In every piece (tax bracket), it must be computed cumulatively, considering the taxes which had already been computed to the previous tax brackets. Pictured is the effective income tax for Portugal in 2012 and 2013.
Distribution of US federal taxes from 1979 to 2013, based on CBO Estimates.

The term is frequently applied in reference to personal income taxes, in which people with lower income pay a lower percentage of that income in tax than do those with higher income.

Total revenue from direct and indirect taxes given as share of GDP in 2017

Tax

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Compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.

Compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.

Total revenue from direct and indirect taxes given as share of GDP in 2017
Pieter Brueghel the Younger, The tax collector's office, 1640
Substitution effect and income effect with a taxation on y good.
Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.
The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.
General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.
Egyptian peasants seized for non-payment of taxes. (Pyramid Age)
Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.
Diagram illustrating deadweight costs of taxes

Most countries charge a tax on an individual's income as well as on corporate income.

Taxable income

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Taxable income refers to the base upon which an income tax system imposes tax.

The Sixteenth Amendment in the National Archives

Sixteenth Amendment to the United States Constitution

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The Sixteenth Amendment in the National Archives

The Sixteenth Amendment (Amendment XVI) to the United States Constitution allows Congress to levy an income tax without apportioning it among the states on the basis of population.

Revenue Act of 1861

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The Revenue Act of 1861, formally cited as ''[http://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=012/llsl012.db&recNum=323 Act of August 5, 1861, Chap.

The Revenue Act of 1861, formally cited as ''[http://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=012/llsl012.db&recNum=323 Act of August 5, 1861, Chap.

292]'', included the first U.S. Federal income tax statute (see Sec.49).

Pollock v. Farmers' Loan & Trust Co.

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Landmark case of the Supreme Court of the United States.

Landmark case of the Supreme Court of the United States.

The shortfall in revenue was to be made up by an income tax of two percent on income above $4,000, equivalent to $ today.

Federal receipts by source as share of total receipts (1950–2010). Individual income taxes (blue), payroll taxes/FICA (green), corporate income taxes (red), excise taxes (purple), estate and gift taxes (light blue), other receipts (orange).

Income tax in the United States

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Income taxes in the United States are imposed by the federal government, and most states.

Income taxes in the United States are imposed by the federal government, and most states.

Federal receipts by source as share of total receipts (1950–2010). Individual income taxes (blue), payroll taxes/FICA (green), corporate income taxes (red), excise taxes (purple), estate and gift taxes (light blue), other receipts (orange).
Total U.S. tax revenue as a % of GDP and income tax revenue as a % of GDP, 1945–2011, from Office of Management and Budget historicals
As of 2010, 68.8% of federal individual tax receipts, including payroll taxes, were paid by the top 20% of taxpayers by income group, which earned 50% of all household income. The top 1%, which took home 19.3%, paid 24.2% whereas the bottom 20% paid 0.4% due to deductions and the earned income tax credit.
Marginal and effective federal income tax rates in the U.S. for 2018.
The U.S. federal effective corporate tax rate has become much lower than the nominal rate because of various special tax provisions.
Top Marginal State Income Tax Withholding Rates 2022
List of countries by tax revenue to GDP ratio
People filing tax forms in 1920.
President Abraham Lincoln and the United States Congress introduced in 1861 the first personal income tax in the United States.
Amendment XVI in the National Archives
Taxes revenue by source chart history
Distribution of U.S. federal taxes for 2000 as a percentage of income among the family income quintiles.
CBO chart illustrating the percent reduction in income inequality due to federal taxes and income transfers from 1979 to 2011.

The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions.

Detail of a portrait painting
by Henry William Pickersgill

Robert Peel

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British Conservative statesman who served twice as Prime Minister of the United Kingdom (1834–1835 and 1841–1846) simultaneously serving as Chancellor of the Exchequer (1834–1835) and twice as Home Secretary (1822–1827 and 1828–1830).

British Conservative statesman who served twice as Prime Minister of the United Kingdom (1834–1835 and 1841–1846) simultaneously serving as Chancellor of the Exchequer (1834–1835) and twice as Home Secretary (1822–1827 and 1828–1830).

Detail of a portrait painting
by Henry William Pickersgill
Christ Church, Oxford, which Peel attended 1805–1808, graduating with a double first. He was later MP for the university, 1817–1829.
The Duke of Wellington, Prime Minister 1828–1830, with Peel
This satirical 1829 cartoon by William Heath depicted the Duke of Wellington and Peel in the roles of the body-snatchers Burke and Hare suffocating Mrs Docherty for sale to Dr. Knox; representing the extinguishing by Wellington and Peel of the 141-year-old Constitution of 1688 by Catholic Emancipation.
Engraving showing the members of Sir Robert Peel's government in 1844
Thomas Lawrence's portrait of his patron Julia, Lady Peel (1827), now in the Frick Collection.
Portrait of Robert Peel by Thomas Lawrence
Statue by Edward Hodges Baily in Bury
Statue in Parliament Square, London
Statue in Piccadilly Gardens, Manchester
Statue in Woodhouse Moor, Leeds
Statue in George Square, Glasgow
Statue in Peel Park, Bradford
Statue near Gawsworth Old Hall
Statue in Edgbaston, Birmingham

He cut tariffs to stimulate trade, replacing the lost revenue with a 3% income tax.

Share of U.S. Federal Revenue from Different Tax Sources (Individual, Payroll, and Corporate) 1950–2010

Corporate tax

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Often determined much like taxable income for individual taxpayers.

Often determined much like taxable income for individual taxpayers.

Share of U.S. Federal Revenue from Different Tax Sources (Individual, Payroll, and Corporate) 1950–2010
General government revenue, in % of GDP, from Corporate Income Taxes. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 2 % by tax revenue. Years 2014-17.

The tax systems of most countries impose an income tax at the entity level on the certain type(s) of entities (company or corporation).

Portrait by John Hoppner

William Pitt the Younger

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British Tory statesman of the late eighteenth and early nineteenth centuries.

British Tory statesman of the late eighteenth and early nineteenth centuries.

Portrait by John Hoppner
William Pitt by Joseph Nollekens, 1808
Statue of Pitt at Pembroke College, Cambridge, his alma mater
The huge monument to William Pitt the Younger by J. G. Bubb in the Guildhall, London, faces an equally huge monument to his father, William Pitt the Elder, in a balanced composition
William Pitt in 1783
The fall of Tipu Sultan and the Sultanate of Mysore in 1799
In "A new way to pay the National Debt" (1786), James Gillray caricatured Queen Charlotte and George III awash with treasury funds to cover royal debts, with Pitt handing them another moneybag.
Pitt (standing centre) addressing the Commons on the outbreak of the war with France (1793); painting by Anton Hickel
William Pitt by Gainsborough Dupont in the Burrell Collection, Glasgow
European colonies in the Caribbean in 1794
Irish Rebellion of 1798
James Gillray caricatured Pitt's resignation in Integrity retiring from Office! (1801).
In Britannia between Death and the Doctor's (1804), Gillray caricatured Pitt as a doctor kicking Addington (the previous doctor) out of Britannia's sickroom.
In Uncorking Old Sherry (1805), Gillray caricatured Pitt uncorking a bottle of Sheridan that is bursting out with puns and invective.
Marble bust of William Pitt by Joseph Nollekens, 1807. Yale Center for British Art
Statue in George Street, Edinburgh

Pitt was also forced to introduce Great Britain's first-ever income tax.