The federal income tax rate is 10%. Or 28%. Or 35%. Or maybe something in between. Income taxes are assessed by tax brackets. The first few thousand you earn is taxed at the rate of the lowest bracket. Anything you earn in the next bracket is taxed at a different rate, and so on. In 2010, earnings of less than $8,375 were taxed at 10%, while earnings above $373,650 were in the highest tax bracket, and taxed at 35%.
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