what are federal taxes?

Federal taxes are taxes collected by the United States federal government on the income earned by individuals, corporations, trusts, and other legal entities. These taxes are primarily levied on all forms of earnings such as wages, salaries, commissions, bonuses, investment income, and certain unearned income. The federal income tax system in the U.S. is progressive, meaning that higher income levels are taxed at higher rates, with current tax rates ranging from 10% to 37%. Federal taxes are the largest source of revenue for the U.S. government and fund a wide variety of public services and programs, including infrastructure, Social Security, Medicare, defense, education, public transportation, and disaster relief. The federal tax system is administered by the Internal Revenue Service (IRS), and taxes are reported annually by individuals and entities using Form 1040 or other relevant tax forms. In addition to income taxes, federal taxes also include employment taxes that fund social programs such as Medicare and Social Security, as well as taxes on certain gifts and estates. Overall, federal taxes contribute to the government's ability to operate and provide services to the public.