Section 5 Current Tax Rate Structure

• Library: Bus Trans 2005

For 2005, married individuals filing jointly and surviving spouses are subject to the following tax rates:

• 10% on the first $14,600 of taxable income
• 15% on taxable income between $14,600 and $59,400
• 25% on taxable income between $59,400 and $119,950
• 28% on taxable income between $119,950 and $182,800
• 33% on taxable income between $182,800 and $326,450
• 35% on taxable income in excess of $326,450

The size of the 15% tax bracket for joint income tax filers is determined in accordance with the scheduled phase-in set forth in I.R.C. § 1(f)(8) as enacted in EGTRRA 2001. The thresholds at which the tax rates apply are adjusted for inflation each year based on the Consumer Price Index. I.R.C. § 1(f)(1).

The Internal Revenue Service Restructure and Reform Act of 1998, Pub. L. No. 105-206, 112 Stat. 685, reduced the holding period for the less than 28% maximum capital gains rates for noncorporate taxpayers from 18 months...