People will celebrate the anniversary of American independence on 4th July with street parades and fireworks but did you know that the fight for independence began with taxes?
‘Taxation without representation!’ was the battle cry in 1776 in America’s 13 colonies who were forced to pay taxes to the British government despite having no representation in parliament. and which led to the Continental Congress signing a Declaration of Independence from Britain on 4th July 1776. In honour of Independence Day we present a few facts about the modern American tax system:
- 7% - the top marginal income tax rate in 1913, the first year the modern income tax was levied
- 94% - the highest-ever marginal tax income rate which was levied in 1944-45
- 39.6% - the top marginal rate for tax year 2015-16. This will hit taxpayers with a taxable income of $413,200+ for individuals and $464,850+ for married couples filing their return jointly.
- $4,000 – the personal tax exemption amount for 2015 (up from $3,950 from 2014)
- 148 million – the number of U.S personal income tax returns filed for the tax year 2013-14
If you need to catch up on your US Tax return or you have any questions about your US taxes please email or contact us on +44 (0)20 3757 9290.
On behalf of everyone at Bambridge Accountants we wish all of our American clients a very Happy Independence Day!