How Taxes Impact Your Wallet

What can be determined from this selection? Check all that apply.

A. Federal income taxes are progressively assessed based on taxable income. B. The IRS oversees tax law administration and collection. C. Politics can significantly influence tax laws.

Answers

Final answer:

A. Federal income taxes are progressively assessed based on taxable income. B. The IRS oversees tax law administration and collection. C. Politics can significantly influence tax laws.

Explanation

Federal income taxes are assessed based on an individual's taxable income. The U.S. government uses a progressive tax system where higher incomes are taxed at higher rates. This system ensures that those with more wealth contribute more to taxes. Additionally, the IRS is responsible for enforcing tax laws and ensuring compliance. Lastly, political decisions can shape tax laws, impacting how much individuals pay in taxes and where those funds are allocated.