How does less taxes and tolls affect the amount of money in everyone's pocket? How would this help start the Industrial Revolution?

Most income tax bracket rates went down between 2-4 percent due to the Tax Cuts and Jobs Act. The lowest rate – 10 percent — didn’t change. Check out the 2019 tax rates below for single filers and those married filing joint returns.

2019 Tax RateTaxable Income Level

10%                           Up to $9,700

12%                            $9,701-$39,475

22%                          $39,476-$84,200

24%                    $84,201-$160,725

32%                         $160,726-$204,100

35%                        $204,101-$510,300

37%Over $510,301

Tax Bracket for Married Filing Jointly

2019 Tax RateTaxable Income Level

10%                   Up to $19,400

12%                  $19,401-$78,950

22%                  $78,951-$168,400

24%                   $168,401-$321,450

32%            $321,451-$408,200

35%                 $408,201-$612,350

37%                Over $612,351

Not even close. A common misconception is that when your income reaches a bracket level, all your income is taxed at that rate. Fortunately, that is not true. Each portion of your taxable income is taxed at the applicable bracket rate. For example, if you were Single and made $10,000 in taxable income in 2019, you would pay a 10 percent rate on the first $9,700. You would only pay the 12 percent rate on $300 (the amount over $9,700).

To better understand how this works, check out the TaxAct Tax Bracket Calculator. Enter your filing status and taxable income. The calculator shows your tax bracket and your tax as a percent of income. For example, if you are married filing a joint return with a taxable income of $100,000, your tax bracket is 22 percent in 2019. The tax at that rate is only 13.88 percent of your taxable income, however. That’s because not all your income is taxed at your highest rate.

Keep in mind – the taxable income referred to in these tables is your income after all your adjustments and deductions.

Why is it useful to know my tax bracket rate if it doesn’t apply to my entire taxable income?

Your top tax bracket rate is the amount you pay on each additional dollar you earn. You can use that information to determine how much you get to keep if you earn another dollar, or how a deduction might help you. (Don’t forget to account for other taxes, such as Social Security, Medicare and state income taxes.)

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