top of page

"The hardest thing in the world to understand is income tax!"

This is a quote by Albert Einstein. Americans spend billions of hours each year working on their taxes, not to mention the cost of accountants and tax preparers.

Taxes are complex, but they are essential to funding public services.

I explain the U.S. tax system using three key areas below:

1/ U.S. Taxes are Progressive

Taxes increase with higher incomes to ensure a fair distribution of the tax burden across all taxpayers.

2/ Tax History in the United States

The founding fathers were cautious of the government’s taxing powers. During wars, taxes rose to finance the war, with income tax reducing in times of peace. In the late 1800s, income tax gained support to counter wealth concentration and monopolies.

3/ Have Taxes Really Changed?

Analysis shows the federal tax system is as progressive today as it was in the late 1970s. The proportion of taxes paid by the top 1% matches the proportion of income they receive, and this figure hasn’t changed much.

Collaborating with your accountant to understand available tax credits and deductions is key.

This becomes even more important as your income grows, allowing you to reduce your tax liability effectively.

3 views0 comments

Recent Posts

See All

FinCEN Beneficial Ownership Information

If you're a small business owner, another chore just got added to your list. It's crucial to be aware of the latest regulations from the U.S. Department of the Treasury’s Financial Crimes Enforcement

Strategic Tax Planning for Rental Property Renovations

You just acquired a rental property and are pouring thousands of dollars into renovating it. But wait, the IRS states that the costs of renovating the property cannot be immediately deducted for tax p


bottom of page