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Tax Write For Us – Taxes are mandatory contributions collected by a government agency, local, regional, or national, from natural or legal persons. Tax revenue funds government activities, including public works and services like roads and schools or programs like Social Security and Medicare.

In economics, taxes fall on whoever bears the tax burden, regardless of whether it is the taxed entity, e.g. a business, or the end users of the business’s assets. From an accounting perspective, there are several taxes to consider, including payroll taxes, federal and state income taxes, & sales taxes.

Taxes Key Points

Types of Tax

There are several same common types of taxes:

Income Tax

A percentage of earned income that is remitted to the state or federal government

Payroll Tax

A percentage withheld from an employee’s wages by an employer, which remits it to the government on the employee’s behalf to fund the Medicare and Social Security programs.

Business Income Tax

A percentage of corporate profits that the government withholds as a tax to fund federal programs.

Sales Tax

Taxes levied on certain goods and services; varies by jurisdiction

Property Tax

Based on the value of land and real estate assets.

Tariff Tax

Taxes on imported goods; to strengthen the local economy

Inheritance Tax

The tax rate applied to the market value (FMV) of property in a person’s land at the time of the person’s death; the total discount must exceed thresholds set by the state and federal governments

Tax systems vary widely from country to country, and it is important that individuals and businesses carefully study the tax laws of a new territory before earning income or doing business there.

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