Income tax in USA

Income taxes in the United States are levied by the federal government and by state and local governments. The federal income tax, upon which this text focuses, is collected by the Internal Revenue Service (IRS), part of the Department of the Treasury. The rules for collecting income taxes are set in the Internal Revenue Code (IRC), Title 26 of the United States Code. The IRC is a statute written and regularly revised by Congress. Treasury Regulations are more detailed rules written by the IRS to effectuate the implementation of the IRC. Code provisions, which are statutory, always trump contrary regulatory provisions. Regulations can be of two types: legislative and interpretive. With legislative regulations, Congress says, for example, that depreciation will be an allowable expense "in accordance with regulations to be established by the IRS." It gives the IRS the power to make the rules. Interpretive regulations are those in which the IRS says how it will interpret and apply a given statute.

INTRODUCTION 4
I. Principal 5
II. Types 6
Personal 6
Corporate 7
Payroll 7
Inheritance 7
Capital gains tax 8
III. History 8
China 8
United Kingdom 8
IV. Around the world 9
V. Basics 10
Federal income tax rates 12
Marginal tax rates 12
VI. Effective income tax rates 13
VII. Taxable income 14
Gross income 14
Business deductions 15
Personal deductions 16
CONCLUSION 17