With April 15 fast approaching, we would like to point to several observations regarding federal income taxes that might be of interest to our readers.
According to IRS data, 143,399,737 individual tax returns were filed for calendar year 2011. Of this total 1,481,966, or roughly one percent, were subjected to an IRS examination (audited) during fiscal year 2012. Roughly one third of these audited returns claimed the earned income tax credit (EITC).
It is well known that federal income tax rates are progressive; marginal tax rates rise at an increasing rate as taxable income rises. What might not be as apparent is that examination rates are progressive as well. The chance of being audited grows disproportionately higher, generally, as adjusted gross income rises:
The complexity of the tax code is also noteworthy. Complying with the tax code is estimated to cost taxpayers roughly $400 billion per year, according to the Tax Foundation. Based on the most recent statistics available, 62 percent of taxpayers rely on a professional tax preparer to file their tax returns. These figures do not include the IRS’s annual budget of $12 billion, or associated litigation costs, nor do they account for the “deadweight loss” to society (inefficiencies created by changes in taxpayer behavior) that result from the tax code.
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How To Start A High-Yield Dow Portfolio
A Look Inside The High-Yield Dow Model
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow Jones Industrials Ranked By Yield
Recommended Investment Vehicles
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