This page is intended to answer the broad questions most people have about the workings of our tax system. We hope the information provided is helpful. Our "Frequently Asked Questions" page is a work in progress; we plan to continue adding information about the tax system as we receive questions from the public. If you have a question about our tax system that is not answered on this page (or on the rest of our website), we invite you to e-mail us at ctj@ctj.org, or simply click on the mailbox, to submit your questions. We'll do our best to answer any question you have concerning the tax system or CTJ.
To see our answer to any of the following tax questions, simply click anywhere on the question.
Tax Topics
The Estate Tax
Q: What are estate and gift taxes and how are they calculated?
Q: What arguments can be made in favor of the estate tax?
Federal Income Tax
Q:What percentage of Americans pay at each marginal tax rate?
Q: What percentage of homeowners take homeowner-related deductions on their federal tax returns?
State Taxes
Q: How many states index their income tax for inflation?
Q: How many states tax groceries under their general sales tax?
Q: Which states rely most heavily on general sales taxes as a source of revenue?
Q: How many states do not have a broad-based personal income tax?
Q: How many states allow a deduction for federal income taxes paid? How is this deduction calculated?
Q: How many states do not have a general sales tax?
Tax Issues in Social Security
Q: How are Social Security benefits taxed?
Q: How is the Social Security system funded?
Q: Why does the federal payroll tax apply only to the first $72,600 of earned income in 1999? What would be the effect of removing this cap?
The Earned Income Tax Credit
Q: Which states have an Earned Income Tax Credit (EITC)?