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The more you earn, the higher is the tax rate on people earn. In 2010-you have six tax brackets: 10%, 15%, 25%, 28%, 33%, and 35% – each assigned the bracket of taxable income.
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If you buy a national muni bond fund your interest income will be free of federal duty (but not state income taxes). One does buy scenario muni bond fund that owns bonds from your state this interest income will be «double-tax free» for both federal assuring income .
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