How the U.S tax system works? Most lawmakers and voters believe that our tax system needs to be reformed. It is perplexing and complex, and it favors certain individuals and economic activities over others. However, how to alter the tax code can be a contentious matter, exacerbated further by widespread misconceptions about how the current system operates.

Many commentators have asked for the current tax law to be simplified in order to remove preferences and make it easier to understand. In its most recent budget, the Administration proposed tax reforms aimed at higher-income people.

Before we can assess the worth of specific initiatives, we need to understand how the system operates in general. Check out the infographic below for a system overview.

 

 

For more information, please go to Internal Revenue Service | (irs.gov)

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