004 - The Federal Income Tax

The progressive income tax has multiple brackets, each with its own rate. This video explain how the amount of tax owed is calculated and also discusses the two of the most prominent breaks provided by the Congress, the standard deduction and the per child tax credit.

It also illustrates how a household can pay no income tax, as approximately 40% of households do, as well as looks at the significant burden placed on high income earners such as athletes and entertainers.