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The major controversy regarding the U.S. taxation system is the degree to which taxes should be "progressive" or "regressive". Prior to 1982, the U.S. income tax was far more progressive, meaning that high income earners paid a substantial percentage of their income in taxes. Since 1986, the maximum tax rate (also called the marginal tax rate) has ranged from 28% to 39.6%. The present rate is 35%.
Most states receive revenue through sales taxes, which tend to be a regressive type of tax.
Congress recently repealed the estate tax. While it was effective, the estate tax only applied to wealthy estates and provided only a small amount of federal revenue.
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