Tax Determination- Tax Rate Schedule Method

Date: Wednesday, September 10, 2008
Time: 11 PM
Place: Kitchen

Prior to 2001 tax legislation, the Tax Rate Schedules contained rates of 15, 28, 31, 36, and 19.6 percent. These rates were scheduled to be reduced to 10, 15, 25, 28, 33, and 35 percent by the year 2006. JGTRRA of 2003, however, accelerated the phasein and made the new rates effective as of January 1, 2003. A sunset provision reinstates the original rates (pre-2001) after 2010.
Several terms are used to describe the tax rate. The rates in the Tax Rate Schedules are often referred as statutory rates. The marginal rate is the highest rate that is applied in the tax computation for a particular taxpayer.

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