Did you know that you might be losing out cash on by not filing tax returns? Yes, you might be eligible for a tax refund but like many out there, you might not know. Well, frankly most of us know very little about the US tax system because it always sounds complex, right? Thankfully, PDFelement has created a simple infographic that summarizes important things you might not know about US tax.
In summary, this infographics highlights on where the federal government gets revenue from coupled with the revenue trends over the past few years not to mention how the tax burden compares to other developed countries around. Did we also mention that there is an awesome summary of tax refunds i.e. how you can file for a tax refund which also touches on the spending trends on tax refunds among Americans. The beauty is that everything has been simplified!
It is no surprise that most of the government’s revenue comes from individuals like you who contribute to half of the country’s revenue. This is followed by payroll taxes at 33% which includes social security, Medicare, and employment insurance. Interestingly though, corporate taxes contribute a mere 10% and it is bound to drop keeping in mind that President Trump cut the tax rate from 35% to 21% in the new Tax Cuts and Jobs Act signed in December 2017.
You might expect corporations to pay more right? Well, that’s not the case because they simply pass down their tax burden to you by either reducing wages or raising prices of goods or services. In other words, it doesn’t matter if the corporate tax is raised or reduced, it all trickles down to you as a tax payer in one way or another.
Now, you can get more interesting facts and figures about the US tax from the marvelous infographic. Just don’t forget to file your tax refund with the IRS on time and you can use this guide to help you through.
