WAYT - Federal Taxes 101, Taxing Income vs. Wealth/Assets
- Doug Oosterhart, CFP®
- Aug 17, 2021
- 1 min read
How do federal taxes even work? What's the difference between marginal and effective tax rates?
Should the US tax income (current process) or should it tax wealth and assets? Let's discuss.
The marginal tax rate is the rate of tax charged on a taxpayer's last dollar of income. The effective tax rate is the actual percentage of taxes you pay on all your taxable income.
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