153-492: The Federal Insurance Contributions Act ( FICA / ˈ f aɪ k ə / ) is a United States federal payroll (or employment) tax payable by both employees and employers to fund Social Security and Medicare —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers. The Federal Insurance Contributions Act is a tax mechanism codified in Title 26 , Subtitle C, Chapter 21 of
306-406: A United States Supreme Court ruling in 2011. A student enrolled and regularly attending classes at a school, college, or university who performs work as a cook, waiter, butler, maid, janitor, laundress, furnaceman, handyman, gardener, housekeeper, housemother, or similar duties in or around the club rooms or house of a local college club, or in or about the club rooms or house of a local chapter of
459-580: A " Special Relationship " with the United Kingdom and strong ties with Canada , Australia , New Zealand , the Philippines , Japan , South Korea , Israel , and several European Union countries ( France , Italy , Germany , Spain , and Poland ). The U.S. works closely with its NATO allies on military and national security issues, and with countries in the Americas through
612-496: A certain period of time (generally three or four years from the tax return due date). Federal income brackets and tax rates for individuals are adjusted annually for inflation. The Internal Revenue Service (IRS) accounts for changes to the CPI and publishes the new rates as " Tax Rate Schedules ". Beginning in 2013, an additional tax of 3.8% applies to net investment income in excess of certain thresholds. An individual pays tax at
765-549: A child is employed by a partnership in which each partner is a parent of the child. The exemption does not apply when the child is employed by a corporation or a partnership with partners who are not the child's parent. Foreign governments are exempt from FICA tax on payments to their employees. International organizations are also exempt if the organization is listed in the International Organizations Immunities Act . If an employee
918-494: A college fraternity or sorority, are exempt from FICA tax. If the location's primary purpose is to provide room or board, however, then the work is subject to FICA tax. Performing these services for an alumni club or alumni chapter also does not qualify for the exemption from FICA tax. A number of state and local employers and their employees in the states of Alaska, California, Colorado, Illinois, Louisiana, Maine, Massachusetts, Nevada, Ohio, and Texas are currently exempt from paying
1071-453: A company or business may not be the same as its book income. Gross income includes all income earned or received from whatever source . This includes salaries and wages, tips, pensions, fees earned for services, price of goods sold, other business income, gains on sale of other property, rents received, interest and dividends received, proceeds from selling crops, and many other types of income. Some income, such as municipal bond interest,
1224-542: A coordinated, continent-wide military effort. Finally, deteriorating relations between the British military establishment and the colonists, relations that were already less than positive, set the stage for further distrust and dislike of British troops. Following their victory in the French and Indian War, Britain began to assert greater control over local colonial affairs, resulting in colonial political resistance ; one of
1377-534: A decentralized government that operated until 1789. After the British surrender at the siege of Yorktown in 1781 American sovereignty was internationally recognized by the Treaty of Paris (1783), through which the U.S. gained territory stretching west to the Mississippi River, north to present-day Canada, and south to Spanish Florida . The Northwest Ordinance (1787) established the precedent by which
1530-634: A faster rate than the Consumer Price Index (CPI-U). The employee's share of the Medicare portion of the tax is 1.45% of wages, with no limit on the amount of wages subject to the Medicare portion of the tax. Because some payroll compensation may be subject to federal and state income tax withholding in addition to Social Security tax withholding and Medicare tax withholding, the Social Security and Medicare taxes often account for only
1683-407: A federally declared disaster. Other income producing expenses in excess of 2% of adjusted gross income are also deductible. Before 2010, the allowance of itemized deductions was phased out at higher incomes. The phase out expired for 2010. Employers get a deduction for amounts contributed to a qualified employee retirement plan or benefit plan. The employee does not recognize income with respect to
SECTION 10
#17327733717101836-407: A few prominent industrialists , largely by their formation of trusts and monopolies to prevent competition. Tycoons led the nation's expansion in the railroad , petroleum , and steel industries. The United States emerged as a pioneer of the automotive industry . These changes were accompanied by significant increases in economic inequality , slum conditions , and social unrest , creating
1989-400: A flat amount as a standard deduction . This was $ 12,550 for single individuals and $ 25,100 for married individuals filing a joint return for 2021. Alternatively, individuals may claim itemized deductions for actual amounts incurred for specific categories of nonbusiness expenses. Expenses incurred to produce tax exempt income and several other items are not deductible. Home owners may deduct
2142-525: A given bracket only for each dollar within that tax bracket 's range. The top marginal rate does not apply in certain years to certain types of income. Significantly lower rates apply after 2003 to capital gains and qualifying dividends (see below). Income tax for year 2017: Single taxpayer making $ 40,000 gross income, no children, under 65 and not blind, taking standard deduction; Note, however, that taxpayers with taxable income of less than $ 100,000 must use IRS provided tax tables. Under that table for 2016,
2295-666: A global reach. The U.S. is a founding member of the World Bank , Organization of American States , NATO , and the United Nations , as well as a permanent member of the UN Security Council . The first documented use of the phrase "United States of America" is a letter from January 2, 1776. Stephen Moylan , a Continental Army aide to General George Washington , wrote to Joseph Reed , Washington's aide-de-camp , seeking to go "with full and ample powers from
2448-413: A graduated rate, and some at a flat rate on all taxable income. Individuals are eligible for a reduced rate of federal income tax on capital gains and qualifying dividends . The tax rate and some deductions are different for individuals depending on filing status . Married individuals may compute tax as a couple or separately. Single individuals may be eligible for reduced tax rates if they are head of
2601-668: A household in which they live with a dependent. Taxable income is defined in a comprehensive manner in the Internal Revenue Code and tax regulations issued by the Department of Treasury and the Internal Revenue Service . Taxable income is gross income as adjusted minus deductions . Most states and localities follow these definitions at least in part, though some make adjustments to determine income taxed in that jurisdiction. Taxable income for
2754-457: A joint return or surviving spouse, and $ 18,800 for a head of household. Itemized deductions : Those who choose to claim actual itemized deductions may deduct the following, subject to many conditions and limitations: Capital gains : Capital gains include gains on selling stocks and bonds, real estate, and other capital assets. The gain is the excess of the proceeds over the adjusted tax basis (cost less depreciation deductions allowed) of
2907-554: A lack of trust in God, and see it as their religious duty to provide for members who are sick, disabled, or elderly. In order to apply to become exempt from paying FICA tax under this provision, the person must file Form 4029, which certifies that the person: People who claim the above exemption must agree to notify the Internal Revenue Service within 60 days of either leaving the religious group or no longer following
3060-471: A loss . Generally, such loss can reduce other taxable income, subject to some limits. Personal deductions : The former deduction for personal exemptions was repealed for 2018 through 2025 . Standard deduction : Individuals get a deduction from taxable income for certain personal expenses. An individual may claim a standard deduction . For 2021, the basic standard deduction was $ 12,550 for single individuals or married persons filing separately, $ 25,100 for
3213-499: A lower rate than wages , and capital losses reduce taxable income to the extent of gains. Taxpayers generally must determine for themselves the income tax that they owe by filing tax returns . Advance payments of tax are required in the form of tax withholding or estimated tax payments. Due dates and other procedural details vary by jurisdiction, but April 15, Tax Day is the deadline for individuals to file tax returns for federal and many state and local returns. Tax as determined by
SECTION 20
#17327733717103366-450: A major forest fire, to respond to a volcano eruption, or to help people affected by a severe earthquake or flood. Regular long-term police employees and regular long-term fire employees do not qualify under this particular exemption from FICA tax. Payments to newspaper carriers under age 18 are exempt from FICA tax. Compensation for real estate agents and salespeople is exempt from FICA tax under certain circumstances. The compensation
3519-597: A member of a federally recognized Native American tribe that has recognized fishing rights or a qualified Native American entity employs another member of the same Native American tribe for a fishing rights-related activity, the wages are exempt from FICA. Some nonresident aliens are exempt from FICA tax. Members of certain religious groups, such as the Mennonites and the Amish , may apply to be exempt from paying FICA tax. These religious groups consider insurance to be
3672-504: A negative liability. The individual income tax rates in the following chart include capital gains taxes, which have different marginal rates than regular income. Only the first $ 118,500 of someone's income is subject to social insurance (Social Security) taxes in 2016. The table below also does not reflect changes, effective with 2013 law, which increased the average tax paid by the top 1% to the highest levels since 1979, at an effective rate of 33%, while most other taxpayers have remained near
3825-598: A period of heightened, overt racism following Reconstruction, a time often called the nadir of American race relations . A series of Supreme Court decisions, including Plessy v. Ferguson , emptied the Fourteenth and Fifteenth Amendments of their force, allowing Jim Crow laws in the South to remain unchecked, sundown towns in the Midwest, and segregation in communities across the country , which would be reinforced by
3978-430: A portion of the total an employee pays. The employer is also liable for 6.2% Social Security and 1.45% Medicare taxes, making the total Social Security tax 12.4% of wages and the total Medicare tax 2.9%. (Self-employed people are responsible for the entire FICA percentage of 15.3% (= 12.4% + 2.9%), since they are in a sense both the employer and the employed; see the section on self-employed people for more details.) If
4131-488: A prominent leader in the early 1960s. The Great Society plan of President Lyndon Johnson 's administration resulted in groundbreaking and broad-reaching laws, policies and a constitutional amendment to counteract some of the worst effects of lingering institutional racism . The counterculture movement in the U.S. brought significant social changes, including the liberalization of attitudes toward recreational drug use and sexuality . It also encouraged open defiance of
4284-526: A sense of manifest destiny . The Missouri Compromise attempted to balance the desire of northern states to prevent the expansion of slavery into new territories with that of southern states to extend it, admitting Missouri as a slave state and Maine as a free state. It further prohibited slavery in all other lands of the Louisiana Purchase north of the 36°30′ parallel . As Americans expanded further into land inhabited by Native Americans,
4437-614: A sense of American identity as well. Men who otherwise never left their own colony now traveled across the continent to fight alongside men from decidedly different backgrounds but who were no less "American". British officers trained American officers for battle, most notably George Washington ; these officers would lend their skills and expertise to the colonists' cause during the American Revolutionary War to come. In addition, colonial legislatures and officials found it necessary to cooperate intensively in pursuit of
4590-533: A special deduction called a personal exemption . This was not allowed after 2017 but will be allowed again in 2026 . This was a fixed amount allowed each taxpayer, plus an additional fixed amount for each child or other dependents the taxpayer supports. The amount of this deduction was $ 4,000 for 2015. The amount is indexed annually for inflation. The amount of exemption was phased out at higher incomes through 2009 and after 2012 (no phase out in 2010–2012). Citizens and individuals with U.S. tax residence may deduct
4743-493: A state or local government's employees were hired on a temporary basis in response to a specific unforeseen fire, storm, snow, earthquake, flood, or a similar emergency, and the employee is not intended to become a permanent employee, then payments to that employee are exempt from FICA tax. In order to qualify for the exemption from FICA tax, the employee must have been hired to work temporarily in connection with an unforeseen emergency, such as an individual temporarily hired to battle
Federal Insurance Contributions Act - Misplaced Pages Continue
4896-408: A successor-predecessor employer transfer, in which the payments that have already been withheld can be counted toward the year-to-date total. If a worker has overpaid toward Social Security by having more than one job or by having switched jobs during the year, that worker can file a request to have that overpayment counted as a credit for tax paid when he or she files a federal income tax return . If
5049-556: A tax because its collection is directly tied to benefits that one is entitled to collect later in life. However, the United States Supreme Court ruled in Flemming v. Nestor (1960) that the Social Security system is neither a pension nor an insurance program and that no one has an accrued property right to benefits from the system regardless of how much that person may have contributed. FICA therefore behaves as
5202-406: A tax for all practical purposes, earmarked for particular uses by Congress but fully subject to Congressional authority, including redirection. The FICA tax applies to earned income only and is not imposed on investment income such as rental income, interest, or dividends. The Hospital Insurance (HI) portion of FICA, which funds Medicare Part A hospital benefits, applies to all earned income, while
5355-535: A tax rate, which may increase as income increases , to taxable income , which is the total income less allowable deductions . Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed (with some exceptions in the case of federal income taxation), but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within
5508-411: A worker starts a new job halfway through the year and during that year has already earned an amount exceeding the Social Security tax wage base limit with the old employer, the new employer is not allowed to stop withholding until the wage base limit has been earned with the new employer (that is, without regard to the wage base limit earned under the old employer). There are some limited cases, such as
5661-464: A year). Juvenile correctional facilities are operated by local or state governments and serve as longer-term placements for any minor adjudicated as delinquent and ordered by a judge to be confined. As of January 2023, the United States has the sixth-highest per capita incarceration rate in the world—531 people per 100,000 inhabitants—and the largest prison and jail population in
5814-621: Is exempt from income tax . Adjustments (usually reductions) to gross income of individuals are made for contributions to many types of retirement or health savings plans, certain student loan interest, half of self-employment tax, and a few other items. The cost of goods sold in a business is a direct reduction of gross income. Business deductions : Taxable income of all taxpayers is reduced by deductions for expenses related to their business. These include salaries, rent, and other business expenses paid or accrued, as well as allowances for depreciation . The deduction of expenses may result in
5967-416: Is a U.S. citizen, then the employee must typically pay self-employment tax on earnings from work performed in the United States. If a state or local government pays individuals for services performed to be relieved from unemployment, the payments to the individuals are exempt from FICA tax. The services must not be performed by individuals under other types of programs. Payments are not exempt from FICA tax if
6120-434: Is allowed most of the same business deductions as a publicly traded corporation. A business is an activity conducted regularly to make a profit. Only a few business-related deductions are unique to a particular form of business-doing. The deduction of investment expenses by individuals, however, has several limitations, along with other itemized (personal) deductions. The amount and timing of deductions for income tax purposes
6273-591: Is believed to be the first widespread culture in the Americas. Over time, indigenous North American cultures grew increasingly sophisticated, and some, such as the Mississippian culture , developed agriculture , architecture , and complex societies . In the post-archaic period , the Mississippian cultures were located in the midwestern , eastern , and southern regions, and the Algonquian in
Federal Insurance Contributions Act - Misplaced Pages Continue
6426-736: Is determined under tax accounting rules, not financial accounting ones. Tax rules are based on principles similar in many ways to accounting rules, but there are significant differences. Federal deductions for most meals and entertainment costs are limited to 50% of the costs (with an exception for tax year 2021, allowing a 100% deduction for meals purchased in a restaurant). Costs of starting a business (sometimes called pre-operating costs) are deductible ratably over 60 months. Deductions for lobbying and political expenses are limited. Some other limitations apply. Expenses likely to produce future benefits must be capitalized. The capitalized costs are then deductible as depreciation (see MACRS ) or amortization over
6579-485: Is exempt if substantially all compensation is directly related to sales or other output, rather than to the number of hours worked, and there is a written contract stating that the individuals will not be treated as employees for federal tax purposes. The individual must typically pay self-employment tax on the compensation. Prior to the Great Depression , the following presented difficulties for Americans: In
6732-539: Is imposed on net taxable income in the United States by the federal, most state, and some local governments. Income tax is imposed on individuals, corporations, estates, and trusts. The definition of net taxable income for most sub-federal jurisdictions mostly follows the federal definition. The rate of tax at the federal level is graduated; that is, the tax rates on higher amounts of income are higher than on lower amounts. Federal individual tax rates vary from 10% to 37%. Some states and localities impose an income tax at
6885-498: Is known as the presidential system , in contrast to the parliamentary system , where the executive is part of the legislative body. Many countries around the world imitated this aspect of the 1789 Constitution of the United States , especially in the Americas. The Constitution is silent on political parties. However, they developed independently in the 18th century with the Federalist and Anti-Federalist parties. Since then,
7038-438: Is now the United States experienced conflicts with Native Americans, they also engaged in trade, exchanging European tools for food and animal pelts. Relations ranged from close cooperation to warfare and massacres. The colonial authorities often pursued policies that forced Native Americans to adopt European lifestyles, including conversion to Christianity. Along the eastern seaboard, settlers trafficked African slaves through
7191-427: Is primarily an educational one. In order to be exempt from FICA payroll taxes, a student's work must be "incident to" the pursuit of a course of study, which is rarely the case with full-time employment. However full-time college students are never exempt from FICA taxes on work performed off-campus. Medical residents working full-time are not considered students and are not exempt from FICA payroll taxes, according to
7344-427: Is reduced by adjustments and deductions . Among the more common adjustments are reductions for alimony paid and IRA and certain other retirement plan contributions. Adjusted gross income is used in calculations relating to various deductions, credits, phase outs, and penalties. Most business deductions are allowed regardless of the form in which the business is conducted. Therefore, an individual small business owner
7497-461: Is subject to an additional 3.8% tax for individuals with income in excess of certain thresholds. Tax returns : U.S. corporations and most resident individuals must file income tax returns to self assess income tax if any tax is due or to claim a tax refund . Some taxpayers must file an income tax return because they satisfy one of the several other conditions. Tax returns may be filed electronically . Generally, an individual's tax return covers
7650-446: Is the amount the taxpayer is entitled to receive. Gains on property are the gross proceeds less amounts returned, cost of goods sold , or tax basis of property sold. Certain types of income are exempt from income tax . Among the more common types of exempt income are interest on municipal bonds, a portion of Social Security benefits, life insurance proceeds, gifts or inheritances, and the value of many employee benefits. Gross income
7803-552: Is the federal agency charged with addressing most environmental-related issues . The idea of wilderness has shaped the management of public lands since 1964, with the Wilderness Act . The Endangered Species Act of 1973 provides a way to protect threatened and endangered species and their habitats. The United States Fish and Wildlife Service implements and enforces the Act. In 2024, the U.S. ranked 34th among 180 countries in
SECTION 50
#17327733717107956-537: The Allies of World War I , helping to turn the tide against the Central Powers . In 1920, a constitutional amendment granted nationwide women's suffrage . During the 1920s and '30s, radio for mass communication and the invention of early television transformed communications nationwide. The Wall Street Crash of 1929 triggered the Great Depression , which President Franklin D. Roosevelt responded to with
8109-553: The Atlantic slave trade . The original Thirteen Colonies that would later found the United States were administered as possessions of Great Britain , and had local governments with elections open to most white male property owners . The colonial population grew rapidly, eclipsing Native American populations; by the 1770s, the natural increase of the population was such that only a small minority of Americans had been born overseas. The colonies' distance from Britain allowed for
8262-817: The Bering land bridge more than 12,000 years ago, and formed various civilizations and societies . British colonization led to the first settlement of the Thirteen Colonies in Virginia in 1607. Clashes with the British Crown over taxation and political representation sparked the American Revolution , with the Second Continental Congress formally declaring independence on July 4, 1776. Following its victory in
8415-549: The Environmental Performance Index . The country joined the Paris Agreement on climate change in 2016 and has many other environmental commitments. The United States is a federal republic of 50 states and a separate federal capital district, Washington, D.C. It also asserts sovereignty over five unincorporated territories and several uninhabited island possessions . The U.S. is
8568-500: The Federal Bureau of Investigation (FBI) and the U.S. Marshals Service have national jurisdiction and specialized duties, such as protecting civil rights , national security and enforcing U.S. federal courts ' rulings and federal laws. State courts conduct most civil and criminal trials, and federal courts handle designated crimes and appeals of state court decisions . There is no unified "criminal justice system" in
8721-720: The Great Lakes , Mississippi River and Gulf of Mexico . British colonization of the East Coast began with the Virginia Colony (1607) and Plymouth Colony (1620). The Mayflower Compact and the Fundamental Orders of Connecticut established precedents for representative self-governance and constitutionalism that would develop throughout the American colonies. While European settlers in what
8874-719: The Great Lakes region and along the Eastern Seaboard , while the Hohokam culture and Ancestral Puebloans inhabited the southwest . Native population estimates of what is now the United States before the arrival of European immigrants range from around 500,000 to nearly 10 million. Christopher Columbus began exploring the Caribbean for Spain in 1492, leading to Spanish-speaking settlements and missions from Puerto Rico and Florida to New Mexico and California . France established its own settlements along
9027-524: The House of Representatives , a lower house based on population; and the Senate , an upper house based on equal representation for each state. Federalism provides substantial autonomy to the 50 states, while the country's political culture promotes liberty , equality , individualism , personal autonomy , and limited government . One of the world's most developed countries , the United States has had
9180-596: The Midwest . At the same time, about one million French Canadians migrated from Quebec to New England . During the Great Migration , millions of African Americans left the rural South for urban areas in the North. Alaska was purchased from Russia in 1867. The Compromise of 1877 effectively ended Reconstruction and white supremacists took local control of Southern politics . African Americans endured
9333-688: The National Park Service and other agencies. About 28% of the country's land is publicly owned and federally managed, primarily in the Western States . Most of this land is protected , though some is leased for commercial use, and less than one percent is used for military purposes. Environmental issues in the United States include debates on non-renewable resources and nuclear energy , air and water pollution , biodiversity , logging and deforestation , and climate change . The U.S. Environmental Protection Agency (EPA)
SECTION 60
#17327733717109486-652: The New Deal , a series of sweeping programs and public works projects combined with financial reforms and regulations . All were intended to protect against future economic depressions. Initially neutral during World War II , the U.S. began supplying war materiel to the Allies of World War II in March 1941 and entered the war in December after the Empire of Japan 's attack on Pearl Harbor . The U.S. developed
9639-778: The Organization of American States and the United States–Mexico–Canada Free Trade Agreement . In South America, Colombia is traditionally considered to be the closest ally of the United States. The U.S. exercises full international defense authority and responsibility for Micronesia , the Marshall Islands , and Palau through the Compact of Free Association . It has increasingly conducted strategic cooperation with India , but its ties with China have steadily deteriorated. Since 2014,
9792-648: The Pentium microprocessor in accordance with Moore's law , rechargeable lithium-ion batteries , the first gene therapy trial, and cloning either emerged in the U.S. or were improved upon there. The Human Genome Project was formally launched in 1990, while Nasdaq became the first stock market in the United States to trade online in 1998. In the Gulf War of 1991, an American-led international coalition of states expelled an Iraqi invasion force that had occupied neighboring Kuwait . The September 11 attacks on
9945-534: The Soviet Union's collapse and the end of the Cold War in 1991, the U.S. emerged as the world's sole superpower , wielding significant geopolitical influence globally . The U.S. national government is a presidential constitutional federal republic and liberal democracy with three separate branches : legislative , executive , and judicial . It has a bicameral national legislature composed of
10098-591: The Spanish–American War . (The Philippines was granted full independence from the U.S. on July 4, 1946, following World War II. Puerto Rico and Guam have remained U.S. territories.) American Samoa was acquired by the United States in 1900 after the Second Samoan Civil War . The U.S. Virgin Islands were purchased from Denmark in 1917. The United States entered World War I alongside
10251-528: The United States Code . Social security benefits include old-age, survivors, and disability insurance (OASDI); Medicare provides hospital insurance benefits for the elderly. The amount that one pays in payroll taxes throughout one's working career is associated indirectly with the social security benefits annuity that one receives as a retiree. Consequently, Kevin Hassett wrote that FICA is not
10404-574: The archipelagic Hawaii in the Pacific Ocean . The United States also asserts sovereignty over five major island territories and various uninhabited islands . The country has the world's third-largest land area , largest exclusive economic zone , and third-largest population , exceeding 334 million. Its three largest metropolitan areas are New York , Los Angeles , and Chicago , and its three most populous states are California , Texas , and Florida . Paleo-Indians migrated across
10557-700: The cotton gin made the institution increasingly profitable for Southern elites . This sectional conflict regarding slavery culminated in the American Civil War (1861–1865). Eleven slave states seceded and formed the Confederate States of America , while the other states remained in the Union . War broke out in April 1861 after the Confederates bombarded Fort Sumter . After
10710-537: The fall of communism and the collapse of the Soviet Union , which marked the end of the Cold War and left the United States as the world's sole superpower . The 1990s saw the longest recorded economic expansion in American history , a dramatic decline in U.S. crime rates , and advances in technology . Throughout this decade, technological innovations such as the World Wide Web , the evolution of
10863-445: The largest nominal GDP since about 1890 and accounted for over 15% of the global economy in 2023. It possesses by far the largest amount of wealth of any country and has the highest disposable household income per capita among OECD countries. The U.S. ranks among the world's highest in economic competitiveness , productivity , innovation , human rights , and higher education . Its hard power and cultural influence have
11016-733: The 1775 Battles of Lexington and Concord , igniting the American Revolutionary War . At the Second Continental Congress , the colonies appointed George Washington commander-in-chief of the Continental Army , and created a committee that named Thomas Jefferson to draft the Declaration of Independence . Two days after passing the Lee Resolution to create an independent nation the Declaration
11169-408: The 1775–1783 Revolutionary War , the country continued to expand westward across North America , resulting in the dispossession of native inhabitants . As more states were admitted , a North–South division over slavery led to the secession of the Confederate States of America , which fought states remaining in the Union in the 1861–1865 American Civil War . With the victory and preservation of
11322-471: The 1930s, the New Deal introduced Social Security to rectify the first three problems (retirement, injury-induced disability, or congenital disability). It introduced the FICA tax as the means to pay for Social Security. In the 1960s, Medicare was introduced to rectify the fourth problem (health care for the elderly). The FICA tax was increased in order to pay for this expense. In December 2010, as part of
11475-520: The 2010s, political polarization in the country increased between liberal and conservative factions. This polarization was capitalized upon in the January 2021 Capitol attack , when a mob of insurrectionists entered the U.S. Capitol and sought to prevent the peaceful transfer of power in an attempted self-coup d'état . The United States is the world's third-largest country by total area behind Russia and Canada. The 48 contiguous states and
11628-596: The American West have an alpine climate . The climate is arid in the Southwest, Mediterranean in coastal California , and oceanic in coastal Oregon , Washington , and southern Alaska . Most of Alaska is subarctic or polar . Hawaii , the southern tip of Florida and U.S. territories in the Caribbean and Pacific are tropical . States bordering the Gulf of Mexico are prone to hurricanes, and most of
11781-475: The Declaration of Independence on July 4, 1776. The term "United States" and the initialism "U.S.", used as nouns or as adjectives in English, are common short names for the country. The initialism "USA", a noun, is also common. "United States" and "U.S." are the established terms throughout the U.S. federal government , with prescribed rules. In English, the term "America" rarely refers to topics unrelated to
11934-573: The District of Columbia occupy a combined area of 3,119,885 square miles (8,080,470 km ). The coastal plain of the Atlantic seaboard gives way to inland forests and rolling hills in the Piedmont plateau region. The Appalachian Mountains and the Adirondack massif separate the East Coast from the Great Lakes and the grasslands of the Midwest . The Mississippi River System ,
12087-573: The Elder concluded that major military resources needed to be devoted to North America to win the war against France. For the first time, the continent became one of the main theaters of what could be termed a " world war ". The British colonies' position as an integral part of the British Empire became more apparent during the war, with British military and civilian officials becoming a more significant presence in American life. The war increased
12240-544: The FICA tax is regressive . That is, the effective tax rate regresses, or decreases, as income increases beyond the compensation limit or wage base limit amount. The Social Security component is a flat tax for wage levels under the Social Security Wage Base (see "Regular" employees above). Because no tax is owed on wages above the wage base limit amount, the total tax rate declines as wages increase beyond that limit. In other words, for wage levels above
12393-539: The Internal Revenue Code, 26 U.S.C. § 1401 through 26 U.S.C. § 1403 (the "SE Tax Act"). Under the SE Tax Act, self-employed people are responsible for the entire percentage of 15.3% (= 12.4% [Soc. Sec.] + 2.9% [Medicare]); however, the 15.3% multiplier is applied to 92.35% of the business's net earnings from self-employment , rather than 100% of the gross earnings;
12546-683: The January 1863 Emancipation Proclamation , many freed slaves joined the Union army . The war began to turn in the Union's favor following the 1863 Siege of Vicksburg and Battle of Gettysburg , and the Confederacy surrendered in 1865 after the Union's victory in the Battle of Appomattox Court House . The Reconstruction era followed the war. After the assassination of President Abraham Lincoln , Reconstruction Amendments were passed to protect
12699-520: The OASDI portion of the tax is imposed on earned income only up to cap annually set by Congress ($ 160,200 in 2023). In 2004, the Center on Budget and Policy Priorities stated that three-quarters of taxpayers pay more in payroll taxes than they do in income taxes. FICA is subject to neither the standard deduction nor any personal exemption and so is generally considered to be a regressive tax . Since 1990,
12852-611: The Rocky Mountains, the Yellowstone Caldera , is the continent's largest volcanic feature. In 2021, the United States had 8% of global permanent meadows and pastures and 10% of cropland. With its large size and geographic variety, the United States includes most climate types. East of the 100th meridian , the climate ranges from humid continental in the north to humid subtropical in the south. The western Great Plains are semi-arid . Many mountainous areas of
13005-471: The Social Security portion of FICA taxes. They provide alternative retirement and pension plans to their employees. FICA initially did not apply to state and local governments, which were later given the option of participating. Over time, most have elected to participate, but a substantial number remain outside the system. Payments to members of a federally recognized Native American tribe for services performed as council members are not subject to FICA. If
13158-574: The Social Security system. Others, including The Economist and the Congressional Budget Office , point out that the Social Security system as a whole is progressive in the lower income brackets. Individuals with lower lifetime average wages receive a larger benefit (as both a percentage of their lifetime average wage income and a percentage of Social Security taxes paid) than do individuals with higher lifetime average wages; but for some lower earners, shorter lifetimes may negate
13311-633: The Supreme Court unanimously held in United States v. Quality Stores, Inc. that severance pay is taxable wages for FICA purposes. In August 2020 , President Donald Trump signed an executive order to temporarily suspend collection of the tax from September to December 2020. Critics fear this move will lead to more underfunding of the Social Security Trust Fund and Medicare trust fund. The Social Security component of
13464-647: The U.S. has become a key ally of Ukraine ; it has also provided the country with significant military equipment and other support in response to Russia's 2022 invasion . The president is the commander-in-chief of the United States Armed Forces and appoints its leaders, the secretary of defense and the Joint Chiefs of Staff . The Department of Defense , which is headquartered at the Pentagon near Washington, D.C., administers five of
13617-661: The U.S. territories." Despite disparate systems of confinement, four main institutions dominate: federal prisons , state prisons , local jails, and juvenile correctional facilities . Federal prisons are run by the Federal Bureau of Prisons and hold people who have been convicted of federal crimes, including pretrial detainees. State prisons, run by the official department of correction of each state, hold sentenced people serving prison time (usually longer than one year) for felony offenses. Local jails are county or municipal facilities that incarcerate defendants prior to trial; they also hold those serving short sentences (typically under
13770-464: The United States and the peaceful transfer of power , respectively. The Louisiana Purchase of 1803 from France nearly doubled the territory of the United States. Lingering issues with Britain remained , leading to the War of 1812 , which was fought to a draw. Spain ceded Florida and its Gulf Coast territory in 1819. In the late 18th century, American settlers began to expand westward , many with
13923-714: The United States entered the Cold War, where geopolitical tensions between the U.S. and the Soviet Union led the two countries to dominate world affairs . The U.S. utilized the policy of containment to limit the USSR's sphere of influence, and prevailed in the Space Race , which culminated with the first crewed Moon landing in 1969. Domestically, the U.S. experienced economic growth , urbanization , and population growth following World War II . The civil rights movement emerged, with Martin Luther King Jr. becoming
14076-666: The United States has operated as a de facto two-party system , though the parties in that system have been different at different times. The two main national parties are presently the Democratic and the Republican . The former is perceived as relatively liberal in its political platform while the latter is perceived as relatively conservative . In the American federal system , sovereign powers are shared between two levels of elected government: national and state. People in
14229-593: The United States in 2001 by the pan-Islamist militant organization al-Qaeda led to the war on terror , and subsequent military interventions in Afghanistan and Iraq . The cultural impact of the attacks was profound and long-lasting. The U.S. housing bubble culminated in 2007 with the Great Recession , the largest economic contraction since the Great Depression. Coming to a head in
14382-597: The United States of America to Spain" to seek assistance in the Revolutionary War effort. The first known public usage is an anonymous essay published in the Williamsburg newspaper, The Virginia Gazette , on April 6, 1776. By June 1776, the "United States of America" appeared in the Articles of Confederation and the Declaration of Independence . The Second Continental Congress adopted
14535-653: The United States on a temporary work assignment may be exempt from paying FICA tax on their earnings from working in the United States if there is a totalization agreement between the United States and the worker's home country. Countries who have such a tax treaty with the United States include Australia , Austria , Belgium , Canada , Chile , Czech Republic , Denmark , Finland , France , Germany , Greece , Hungary , Ireland , Japan , Luxembourg , Netherlands , Norway , Poland , Portugal , Slovakia , South Korea , Spain , Sweden , Switzerland , and United Kingdom . In order to claim an exemption from paying FICA tax,
14688-601: The United States, slavery was abolished nationally . By 1900, the country had established itself as a great power , a status solidified after its involvement in World War I . After Japan 's attack on Pearl Harbor in December 1941, the U.S. entered World War II . Its aftermath left the U.S. and the Soviet Union as the world's two superpowers and led to the Cold War , during which both countries struggled for ideological dominance and international influence . Following
14841-541: The United States, despite the usage of "the Americas " as the totality of North and South America. "The States" is an established colloquial shortening of the name, used particularly from abroad; "stateside" is the corresponding adjective or adverb. The first inhabitants of North America migrated from Siberia across the Bering land bridge about 12,000 years ago; the Clovis culture , which appeared around 11,000 BC,
14994-624: The United States, except Iran , North Korea , and Bhutan . Though Taiwan does not have formal diplomatic relations with the U.S., it maintains close unofficial relations. The United States regularly supplies Taiwan with military equipment to deter potential Chinese aggression. Its geopolitical attention also turned to the Indo-Pacific when the United States joined the Quadrilateral Security Dialogue with Australia, India, and Japan. The United States has
15147-509: The United States. The American prison system is largely heterogenous, with thousands of relatively independent systems operating across federal, state, local, and tribal levels. In 2023, "these systems [held] almost 2 million people in 1,566 state prisons, 98 federal prisons, 3,116 local jails, 1,323 juvenile correctional facilities, 181 immigration detention facilities, and 80 Indian country jails, as well as in military prisons , civil commitment centers, state psychiatric hospitals, and prisons in
15300-440: The alien worker must be on a temporary assignment of no more than five years and the alien worker must have a certificate from the country stating that the worker will continue to be covered by the country's social security system while the worker is in the United States. When a parent employs a child under age 18 (or under age 21 for domestic service ), payments to the child are exempt from FICA tax. The exemption also applies when
15453-552: The amount of interest and property taxes paid on their principal and second homes. Local and state income taxes are deductible through the SALT deduction although this deduction is currently limited to $ 10,000. Contributions to charitable organizations are deductible by individuals and corporations, but the deduction is limited to 50% and 10% of gross income, respectively. Medical expenses in excess of 10% of adjusted gross income are deductible, as are uninsured casualty losses due to
15606-475: The benefits. United States The United States of America ( USA ), commonly known as the United States ( U.S. ) or America , is a country primarily located in North America . It is a federal union of 50 states and a federal capital district, Washington, D.C. The 48 contiguous states border Canada to the north and Mexico to the south, with the states of Alaska to the northwest and
15759-925: The calendar year. Corporations may elect a different tax year . Most states and localities follow the federal tax year and require separate returns. Tax payment : Taxpayers must pay income tax due without waiting for an assessment. Many taxpayers are subject to withholding taxes when they receive income. To the extent withholding taxes do not cover all taxes due, all taxpayers must make estimated tax payments or face penalties. Tax penalties : Failing to make payments on time, or failing to file returns, can result in substantial penalties . Certain intentional failures may result in criminal penalties, including monetary fines and/or imprisonment. Tax returns may be examined and adjusted by tax authorities. Taxpayers have rights to appeal any change to tax, and these rights vary by jurisdiction. Taxpayers may also go to court to contest tax changes. Tax authorities may not make changes after
15912-773: The case of inventory) or capital (as in the case of stocks and bonds), or a combination (for some buildings and equipment). Most personal, living, and family expenses are not deductible. Business deductions allowed for federal income tax are almost always allowed in determining state income tax. Only some states, however, allow itemized deductions for individuals. Some states also limit deductions by corporations for investment related expenses. Many states allow different amounts for depreciation deductions. State limitations on deductions may differ significantly from federal limitations. Business deductions in excess of business income result in losses that may offset other income. However, deductions for losses from passive activities may be deferred to
16065-457: The contiguous United States are in the State of California, about 84 miles (135 km) apart. At an elevation of 20,310 feet (6,190.5 m), Alaska's Denali is the highest peak in the country and continent. Active volcanoes are common throughout Alaska's Alexander and Aleutian Islands , and Hawaii consists of volcanic islands. The supervolcano underlying Yellowstone National Park in
16218-556: The country's GDP. The U.S. has 42% of the world's nuclear weapons —the second-largest share after Russia. The United States has the third-largest combined armed forces in the world, behind the Chinese People's Liberation Army and Indian Armed Forces . The military operates about 800 bases and facilities abroad, and maintains deployments greater than 100 active duty personnel in 25 foreign countries. State defense forces (SDFs) are military units that operate under
16371-469: The country's territory would expand with the admission of new states , rather than the expansion of existing states. The U.S. Constitution was drafted at the 1787 Constitutional Convention to overcome the limitations of the Articles. It went into effect in 1789, creating a federal republic governed by three separate branches that together ensured a system of checks and balances . George Washington
16524-611: The credits is subject to specific rules and limitations. Some credits are treated as refundable payments. Alternative minimum tax : All taxpayers are also subject to the Alternative Minimum Tax if their income exceeds certain exclusion amounts. This tax applies only if it exceeds regular income tax and is reduced by some credits. Additional Medicare tax : High-income earners may also have to pay an additional 0.9% tax on wages, compensation, and self-employment income. Net investment income tax: Net investment income
16677-713: The development of self-governance, and the First Great Awakening , a series of Christian revivals , fueled colonial interest in religious liberty . For a century, the American colonists had been providing their own troops and materiel in conflicts with indigenous peoples allied with Britain's colonial rivals , especially France, and the Americans had begun to develop a sense of self-defense and self-reliance separate from Britain. The French and Indian War (1754–1763) took on new significance for all North American colonists after Parliament under William Pitt
16830-432: The difference, 7.65%, is half of the 15.3%, and makes the calculation fair in comparison to that of regular (non-self-employed) employees. SECA requires self-employed individuals in the United States to pay Social Security and Medicare taxes. If a self-employed individual has net earnings of $ 400 or more in a tax year, they are generally required to pay SECA taxes. Self-employed individuals are responsible for paying both
16983-477: The employee's share of the Social Security portion of the FICA tax has been 6.2% of gross compensation up to a limit that adjusts with inflation. The taxation limit in 2020 was $ 137,700 of gross compensation, resulting in a maximum Social Security tax for 2020 of $ 8,537.40. This limit, known as the Social Security Wage Base , goes up each year based on average national wages and, in general, at
17136-407: The employer and employee portions of these taxes. However, exceptions and specific rules may apply based on the nature of self-employment and individual circumstances. Some student workers are exempt from FICA tax. Students enrolled at least half-time in a university and working part-time for the same university are exempted from FICA payroll taxes if and only if their relationship with the university
17289-580: The environment for labor unions to begin to flourish . This period eventually ended with the advent of the Progressive Era , which was characterized by significant reforms. Pro-American elements in Hawaii overthrew the Hawaiian monarchy ; the islands were annexed in 1898. That same year, Puerto Rico , the Philippines , and Guam were ceded to the U.S. by Spain after the latter's defeat in
17442-416: The established teachings of the religious group. When a person temporarily works outside their country of origin, the person may be covered under two different countries' social security programs for the same work. In order to relieve a person of double-taxation, the certain countries and the United States have entered into tax treaties, known as totalization agreements . Aliens whose employer sends them to
17595-426: The extent they exceed income from other passive activities. Passive activities include most rental activities (except for real estate professionals) and business activities in which the taxpayer does not materially participate. In addition, losses may not, in most cases, be deducted in excess of the taxpayer's amount at risk (generally tax basis in the entity plus share of debt). Prior to 2018, individuals were allowed
17748-541: The federal government often applied policies of Indian removal or assimilation . The Trail of Tears (1830–1850) was a U.S. government policy that forcibly removed and displaced most Native Americans living east of the Mississippi River to lands far to the west. These and earlier organized displacements prompted a long series of American Indian Wars west of the Mississippi. The Republic of Texas
17901-606: The first nuclear weapons and used them against the Japanese cities of Hiroshima and Nagasaki in August 1945, ending the war. The United States was one of the " Four Policemen " who met to plan the post-war world , alongside the United Kingdom , Soviet Union , and China . The U.S. emerged relatively unscathed from the war, with even greater economic power and international political influence . After World War II,
18054-412: The income tax in the above example would be $ 3,980.00. In addition to income tax, a wage earner would also have to pay Federal Insurance Contributions Act tax (FICA) (and an equal amount of FICA tax must be paid by the employer): Total federal tax including employer's contribution: Effective tax rates are typically lower than marginal rates due to various deductions, with some people actually having
18207-445: The individuals are not considered employees under common law, such as when the individual has control over what work is done and how the work it is done. Payments to patients of an institution for services performed for the state of local government that operates the institution are exempt from FICA tax. Services performed by patients as part of an institution's rehabilitative program or therapeutic program are exempt from FICA tax. If
18360-463: The integration of Army National Guard units and personnel into the U.S. Army and (since 1947) the U.S. Air Force. There are about 18,000 U.S. police agencies from local to national level in the United States. Law in the United States is mainly enforced by local police departments and sheriff departments in their municipal or county jurisdictions. The state police departments have authority in their respective state , and federal agencies such as
18513-481: The jurisdiction. Several types of credits reduce tax, and some types of credits may exceed tax before credits. Most business expenses are deductible. Individuals may deduct certain personal expenses, including home mortgage interest , state taxes, contributions to charity, and some other items. Some deductions are subject to limits, and an Alternative Minimum Tax (AMT) applies at the federal and some state levels. The federal government has imposed an income tax since
18666-510: The legislation that extended the Bush tax cuts (called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 ), the government negotiated a temporary, one-year reduction in the FICA payroll tax. In February 2012, the tax cut was extended for another year. Under FICA, the payroll tax applies to "wages" (defined by the act as "remuneration for employment"). In 2014,
18819-507: The limit, the absolute dollar amount of tax owed remains constant. The earnings above the wage base limit amount are not, however, taken into account in the Primary Insurance Amount (PIA) to determine benefits payable under the various insurance programs of social security. The FICA tax also is not imposed on unearned income , including interest on savings deposits, stock dividends, and capital gains such as profits from
18972-797: The lowest levels since 1979. Income tax is imposed as a tax rate times taxable income. Taxable income is defined as gross income less allowable deductions . Taxable income as determined for federal tax purposes may be modified for state tax . The Internal Revenue Code states that "gross income means all income from whatever source derived," and gives specific examples. Gross income is not limited to cash received, but "includes income realized in any form, whether money, property, or services." Gross income includes wages and tips, fees for performing services, gain from sale of inventory or other property, interest, dividends, rents, royalties, pensions, alimony, and many other types of income. Items must be included in income when received or accrued. The amount included
19125-482: The military draft (leading to the end of conscription in 1973) and wide opposition to U.S. intervention in Vietnam (with the U.S. totally withdrawing in 1975). A societal shift in the roles of women was significantly responsible for the large increase in female paid labor participation during the 1970s, and by 1985 the majority of American women aged 16 and older were employed. The late 1980s and early 1990s saw
19278-612: The most attractive to the population are the most vulnerable. The U.S. is one of 17 megadiverse countries containing large numbers of endemic species : about 17,000 species of vascular plants occur in the contiguous United States and Alaska, and over 1,800 species of flowering plants are found in Hawaii, few of which occur on the mainland. The United States is home to 428 mammal species, 784 birds, 311 reptiles, 295 amphibians , and around 91,000 insect species. There are 63 national parks , and hundreds of other federally managed parks, forests, and wilderness areas , managed by
19431-662: The most violent, the California genocide of thousands of Native inhabitants, lasted into the early 1870s, just as additional western territories and states were created. During the colonial period, slavery had been legal in the American colonies , though the practice began to be significantly questioned during the American Revolution. States in the North enacted abolition laws , though support for slavery strengthened in Southern states , as inventions such as
19584-431: The period future benefits are expected. Examples include costs of machinery and equipment and costs of making or building property. IRS tables specify lives of assets by class of asset or industry in which used. When an asset the cost of which was capitalized is sold, exchanged, or abandoned, the proceeds (if any) are reduced by the remaining unrecovered cost to determine gain or loss. That gain or loss may be ordinary (as in
19737-631: The plan until he or she receives a distribution from the plan. The plan itself is organized as a trust and is considered a separate entity. For the plan to qualify for tax exemption , and for the employer to get a deduction, the plan must meet minimum participation, vesting, funding, and operational standards. Examples of qualified plans include: Employees or former employees are generally taxed on distributions from retirement or stock plans. Employees are not taxed on distributions from health insurance plans to pay for medical expenses. Cafeteria plans allow employees to choose among benefits (like choosing food in
19890-408: The policy of redlining later adopted by the federal Home Owners' Loan Corporation . An explosion of technological advancement accompanied by the exploitation of cheap immigrant labor led to rapid economic expansion during the late 19th and early 20th centuries , allowing the United States to outpace the economies of England, France, and Germany combined. This fostered the amassing of power by
20043-574: The primary colonial grievances was a denial of their rights as Englishmen , particularly the right to representation in the British government that taxed them . To demonstrate their dissatisfaction and resolve, the First Continental Congress met in 1774 and passed the Continental Association , a colonial boycott of British goods that proved effective. The British attempt to then disarm the colonists resulted in
20196-421: The program's primary purpose is to increase an individual's chances of employment by providing training and work experience. Payments to inmates of a prison for services performed for the state or local government that operates the prison are exempt from FICA tax, regardless of the location where the services are performed. Services performed as part of a work-release program are exempt from FICA tax if and only if
20349-464: The property. This lower rate of tax also applies to qualified dividends from U.S. corporations and many foreign corporations. There are limits on how much net capital loss may reduce other taxable income. Tax credits : All taxpayers are allowed a credit for foreign taxes and for a percentage of certain types of business expenses . Individuals are also allowed credits related to education expenses, retirement savings, and child care expenses. Each of
20502-663: The ratification of the Sixteenth Amendment to the United States Constitution was ratified in 1913, and 42 US states impose state income taxes . Income taxes are levied on wages as well as on capital gains , and fund federal and state governments. Payroll taxes are levied only on wages, not gross incomes, but contribute to reducing the after-tax income of most Americans. The most common payroll taxes are FICA taxes that fund Social Security and Medicare . Capital gains are currently taxable at
20655-515: The rights of African Americans . National infrastructure, including transcontinental telegraph and railroads , spurred growth in the American frontier . From 1865 through 1917 an unprecedented stream of immigrants arrived in the United States, including 24.4 million from Europe. Most came through the port of New York City , and New York City and other large cities on the East Coast became home to large Jewish , Irish , and Italian populations, while many Germans and Central Europeans moved to
20808-614: The rocky Great Basin and Chihuahua , Sonoran , and Mojave deserts. In the northwest corner of Arizona , carved by the Colorado River over millions of years, is the Grand Canyon , a steep-sided canyon and popular tourist destination known for its overwhelming visual size and intricate, colorful landscape. The Sierra Nevada and Cascade mountain ranges run close to the Pacific coast . The lowest and highest points in
20961-441: The sale of stock or real estate. The proportion of total income that is exempt from FICA tax as "unearned income" tends to rise with higher income brackets. Some, including Third Way , argue that since Social Security taxes are eventually returned to taxpayers, with interest, in the form of Social Security benefits, the regressiveness of the tax is effectively negated. That is, the taxpayer gets back (more or less) what they put into
21114-462: The same tier, the "last-in-time rule" is applied. As the name implies, the "last-in-time rule" states that the authority that was issued later in time is controlling. Regulations and case law serve to interpret the statutes. Additionally, various sources of law attempt to do the same thing. Revenue Rulings, for example, serves as an interpretation of how the statutes apply to a very specific set of facts. Treaties serve in an international realm. A tax
21267-573: The six service branches, which are made up of the U.S. Army , Marine Corps , Navy , Air Force , and Space Force . The Coast Guard is administered by the Department of Homeland Security in peacetime and can be transferred to the Department of the Navy in wartime. The United States spent $ 916 billion on its military in 2023, which is by far the largest amount of any country , making up 37% of global military spending and accounting for 3.4% of
21420-545: The sole authority of a state government. SDFs are authorized by state and federal law but are under the command of the state's governor . They are distinct from the state's National Guard units in that they cannot become federalized entities. A state's National Guard personnel, however, may be federalized under the National Defense Act Amendments of 1933 , which created the Guard and provides for
21573-543: The states are also represented by local elected governments , which are administrative divisions of the states. States are subdivided into counties or county equivalents , and further divided into municipalities . The District of Columbia is a federal district containing the U.S. capital, Washington, D.C. . The federal district is an administrative division of the federal government. Federally recognized tribes govern 326 Indian reservations . The United States has an established structure of foreign relations, and it has
21726-510: The structure and responsibilities of the national federal government and its relationship with the individual states. The U.S. Constitution is the world's oldest national constitution still in effect (from March 4, 1789). Composed of three branches, all headquartered in Washington, D.C., the federal government is the national government of the United States. It is regulated by a strong system of checks and balances . The three-branch system
21879-597: The taxpayer is due a refund , then the FICA tax overpayment is refunded. A tax similar to the FICA tax is imposed on the earnings of self-employed individuals, such as independent contractors and members of a partnership . This tax is imposed not by the Federal Insurance Contributions Act but instead by the Self-Employment Contributions Act of 1954 (SECA), which is codified as Chapter 2 of Subtitle A of
22032-403: The taxpayer may be adjusted by the taxing jurisdiction. For federal individual (not corporate) income tax, the average rate paid in 2020 on adjusted gross income (income after deductions) was 13.6%. However, the tax is progressive , meaning that the tax rate increases with increased income. Over the last 20 years, this has meant that the bottom 50% of taxpayers have always paid less than 5% of
22185-686: The total individual federal income taxes paid, (gradually declining from 5% in 2001 to 2.3% in 2020) with the top 50% of taxpayers consistently paying 95% or more of the tax collected, and the top 1% paying 33% in 2001, increasing to 42% by 2020. United States income tax law comes from a number of sources. These sources have been divided by one author into three tiers as follows: Where conflicts exist between various sources of tax authority, an authority in Tier 1 outweighs an authority in Tier 2 or 3. Similarly, an authority in Tier 2 outweighs an authority in Tier 3. Where conflicts exist between two authorities in
22338-582: The world's fourth-longest river system , runs predominantly north–south through the heart of the country. The flat and fertile prairie of the Great Plains stretches to the west, interrupted by a highland region in the southeast. The Rocky Mountains , west of the Great Plains, extend north to south across the country, peaking at over 14,000 feet (4,300 m) in Colorado . Farther west are
22491-583: The world's second-largest diplomatic corps as of 2024 . It is a permanent member of the United Nations Security Council , and home to the United Nations headquarters . The United States is a member of the G7 , G20 , and OECD intergovernmental organizations. Almost all countries have embassies and many have consulates (official representatives) in the country. Likewise, nearly all countries host formal diplomatic missions with
22644-444: The world's oldest surviving federation, and its presidential system of national government has been adopted, in whole or in part, by many newly independent states worldwide following their decolonization . It is a liberal representative democracy "in which majority rule is tempered by minority rights protected by law ". The Constitution of the United States serves as the country's supreme legal document , also establishing
22797-553: The world's tornadoes occur in the country , mainly in Tornado Alley . Overall, the United States receives more high-impact extreme weather incidents than any other country. Extreme weather became more frequent in the U.S. in the 21st century, with three times the number of reported heat waves as in the 1960s. In the American Southwest , droughts became more persistent and more severe. The regions considered as
22950-636: The world, with almost 2 million people incarcerated . An analysis of the World Health Organization Mortality Database from 2010 showed U.S. homicide rates "were 7 times higher than in other high-income countries, driven by a gun homicide rate that was 25 times higher". Income tax in the United States The United States federal government and most state governments impose an income tax . They are determined by applying
23103-458: Was annexed in 1845, and the 1846 Oregon Treaty led to U.S. control of the present-day American Northwest . Victory in the Mexican–American War resulted in the 1848 Mexican Cession of California, Nevada, Utah, and much of present-day Colorado and the American Southwest . The California gold rush of 1848–1849 spurred a huge migration of white settlers to the Pacific coast, leading to even more confrontations with Native populations. One of
23256-703: Was adopted on July 4, 1776. The political values of the American Revolution included liberty , inalienable individual rights ; and the sovereignty of the people ; supporting republicanism and rejecting monarchy , aristocracy , and all hereditary political power; civic virtue ; and vilification of political corruption . The Founding Fathers of the United States , who included Washington, Jefferson, John Adams , Benjamin Franklin , Alexander Hamilton , John Jay , James Madison , Thomas Paine , and many others, were inspired by Greco-Roman , Renaissance , and Enlightenment philosophies and ideas. The Articles of Confederation were ratified in 1781 and established
23409-404: Was elected the country's first president under the Constitution, and the Bill of Rights was adopted in 1791 to allay skeptics' concerns about the power of the more centralized government. His resignation as commander-in-chief after the Revolutionary War and his later refusal to run for a third term as the country's first president established a precedent for the supremacy of civil authority in
#709290