Infographic: How the U.S. Tax System Works
Tax myth: Low-income earners don't pay any federal taxes.
One issue that most lawmakers and voters agree on is that
our tax system needs reform. It is confusing, complex, and favors some
individuals and economic activities over others. Exactly how to revise
the tax system, however, can be a hotly contested issue — which is
further complicated by the fact that there are common misconceptions
about how the current system works.
Before we can begin to assess the value of specific
proposals, it helps to get the big picture on how the system works.
Check out the infographic below for an overview of the system, and then
test how much you have learned with our tax quiz.
How the U.S. Tax System Works, courtesy of Peter G. Peterson Foundation
The smallest minority is the individual If you don't believe in individual rights, you don't believe in freedom.