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:
“The question for the country now is how to secure a more equal distribution of property among the people. There can be no republican institutions with vast masses of property permanently in a few hands, and large masses of voters without property.... Let no man get by inheritance, or by will, more than will produce at four per cent interest an income ... of fifteen thousand dollars] per year, or an estate of five hundred thousand dollars.”
—Rutherford Birchard Hayes (1822–1893)
“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)
“He that trusts to you,
Where he should find you lions, finds you hares;
Where foxes, geese.”
—William Shakespeare (1564–1616)