7 Types of Taxes
Taxes Paid by the Individual
Income taxes- are governments impose on financial income generated by all entities within their jurisdiction. By law, business and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public. It has two basic types, they are personal income tax and another one is corporation income tax. Personal income tax levied on incomes of individuals, households, partnerships, and sole-proprietorships Corporation income tax, levied on profits (net earnings) of incorporated firms. a tax on the net income of an individual or a business. The common point of this two types are the income tax rates are generally lower for those who makes less money.
Property taxes- it also referred to as millage tax. It is a tax assessed on real estate by the local government. This tax is paid by who owns property such as land, a home or vehicles. Consumptive taxes- a tax only on income that one spends on goods and services. Example, sales tax. Sales taxes are more or less state or local taxes and usually added to the buying cost of certain things. These taxes will be based on the cost of items and help fund for services provided by state and local government, such as roads, police, and firefighters. Another example are toll road fees, it also are a type of consumption tax.
Tax paid by business
Corporate taxes-A levy placed on the profit of a firm, with different rates used for different levels of profits. Corporate taxes are taxes against profits earned by businesses during a given taxable period; they are generally applied to companies' operating earnings, after expenses such as depreciation have been deducted from revenues.
Payroll taxes- There are two major types of payroll tax – one which is deducted from the salaries by the employers. This is known as...
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