Income Taxation of Estates and Trusts
By contrast, the 2005 tax rate schedule for estates and trusts (not found in the text of the statute, but in IRS publications), provides for relatively high marginal tax rates on relatively low levels of income:
| If taxable income is: | The tax is: |
| Not over $2,000 | 15% of taxable income. |
| Over $2,000 but not over $4,700 | $300.00, plus 25% of the excess over $2,000. |
| Over $4,700 but not over $7,150 | $975.00, plus 28% of the excess over $4,700. |
| Over $7,150 but not over $9,750 | $1,661.00, plus 33% of the excess over $7,150. |
| Over $9,750 | $2,519.00, plus 35% of the excess over $9,750. |
Source, Internal Revenue Service, Year 2005 Instructions for Form 1041, U.S. Income Tax Return for Estates and Trusts, at page 23.
Changes to the tax code are frequently aimed at the provisions of IRC ยง1, with adjustments being made to the percentage of income taxed in each category, and the dollar amounts which trigger a higher level of taxation.
Read more about this topic: Internal Revenue Code Section 1
Famous quotes containing the words income, taxation, estates and/or trusts:
“Some rough political choices lie ahead. Should affirmative action be retained? Should preference be given to people on the basis of income rather than race? Should the system be—and can it be—scrapped altogether?”
—David K. Shipler (b. 1942)
“Every diminution of the public burdens arising from taxation gives to individual enterprise increased power and furnishes to all the members of our happy confederacy new motives for patriotic affection and support.”
—Andrew Jackson (1767–1845)
“I hate the noise and hurry inseparable from great Estates and Titles, and look upon both as blessings that ought only to be given to fools, for ‘tis only to them that they are blessings.”
—Mary Wortley, Lady Montagu (1689–1762)
“In society, in the best institutions of men, it is easy to detect a certain precocity. When we should still be growing children, we are already little men. Give me a culture which imports much muck from the meadows, and deepens the soil,—not that which trusts to heating manures, and improved implements, and modes of culture only!”
—Henry David Thoreau (1817–1862)