Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Explain the difference between the common misconception people have about tax brackets and how they actually work

Sagot :

Answer:

Tax brackets misconception is that it defines how much tax will be paid by an individual but this is not true. It only determines the rate of tax which will be applied to the individual for his income.

Explanation:

The tax bracket is determined for an individual based on his salary. After the computation of taxable income tax brackets are selected and rate is applied which ever tax bracket falls correctly. The tax rate applied to the taxable incomes gives the tax amount which is to be paid by an individual.