Tax Policy

Tax policy defines how the government funds its operations and inherently shapes economic incentives.

Individual vs. Corporate Rates

The Tax Cuts and Jobs Act (TCJA) of 2017 lowered the corporate rate to 21% to align the U.S. with OECD averages, aiming to boost investment. The incidence of the corporate tax (who actually pays it—shareholders vs. workers) remains a subject of intense economic debate.

Marginal Rates

Understanding the difference between marginal rates (the tax on the next dollar earned) and effective rates (total tax divided by total income) is crucial for evaluating progressivity.

Federal Income Tax Estimator

Calculate effective tax rate and marginal bracket based on current CBO baseline projections.

JavaScript is disabled. To estimate your tax manually, use the standard brackets: 10% ($0-$11k), 12% ($11k-$44k), 22% ($44k-$95k), 24% ($95k-$182k), 32% ($182k-$231k), 35% ($231k-$578k), 37% (over $578k) for single filers.

Gross Income ($)

Filing Status

Tax Policy

Individual vs. Corporate Rates

Marginal Rates

Federal Income Tax Estimator

Estimated Tax