a progressive tax system

All residents of the United States are required to pay a portion of their annual earning to the federal government to meet their tax obligation for the year.  The correct Federal tax obligation for the year is based on a number of factors, but is ultimately determined by which tax bracket (2023 = 10%, 12%, 22%, 24%, 32%, 35% or 37%) you are in based on your taxable income for the year.  A progressive tax system does not mean that you will pay a flat tax on your taxable income but instead a portion of your taxable income will be taxed at each rate while you progress from low to high through the brackets.  This way the system ensures that all taxpayers pay the same rates on the same levels of taxable income.  The overall effect is that people with higher incomes pay higher taxes due to the fact that they have earned more income.  State taxes vary by state and can be either flat tax or progressive based on their own rulings.

The reason for hiring someone like myself to help you with your tax preparation is to help eliminate errors in your return, ensure that your returns are properly prepared and that you are paying the least amount of tax possible.  A tax professional is able to advise you on the best strategies for your personal and/or business tax situation to help make smart tax-savings decisions all year long.