Types of Taxes

1) Income Taxes

The United States income tax is usually the first thing people think of when they hear the word tax. That is because between Federal and State taxes some Americans loose as much as 35% of their paychecks to income taxes.

2) Business Taxes

Also known as corporate taxes, these are direct taxes levied on the profits of businesses. Expenses that are deemed necessary to the business can usually be deducted to lower the amount of profits subject to taxation.

3) Payroll Taxes

These are the taxes that must be deducted from wages paid to employees, and the employer usually must match the amounts. Some payroll taxes include federal withholdings, disability insurance, Medicare, and other state withholdings.

4) Capital Gains Taxes

In the United States a tax is levied on all income generated from a taxpayer’s capital gains, which are profits from the sale of an asset that was purchased at a lower price. Alternatively, if a taxpayer suffers from capital losses they can deduct the full loss amounts. The most common capital gains are created from the sale of stocks, bonds, and property.

5) Inheritance Taxes

The inheritance tax – a/k/a the “death tax” – is a tax that arises from the death of a taxpayer. It is imposed on the transfer of any property or asset transferred as the result of a death. However, when they are left to a spouse or a charity, the tax usually does not apply.

6) Sales Taxes

Consumption taxes – a/k/a sales tax – are levied at the point of purchase for specific goods and services. It is usually a percentage determine by the levels of government charging the tax. Due to individual state and local taxes, the exact rate you pay will vary widely by location.

7) Property Taxes

Property taxes are imposed on property by reason of its ownership. Typically, these taxes are paid on real estate. However, property taxes can also be paid on personal property, such as boats, automobiles, recreational vehicles, and other business inventories.

8) Excise Taxes

Any tax that is based on the value of the product being taxed is considered an excise tax. They are based on the quantity of the product. Common examples include those levied on gasoline, cigarettes, taxes, and even those on CD-R's and DVD-R's that are paid to copyright owners.

9) Gift Taxes

A gift tax is a one that is levied on the transfer of property by one taxpayer to another while receiving either nothing or something with a less than equal value in return. Selling something at less than it’s full value or making an interest-free or reduced interest loan, may qualify as making a gift. The IRS’s general rule is that any gift is a taxable gift. However, there are many exceptions.

10) Retirement Taxes

All taxes levied by the government to plan for a taxpayer’s retirement could be considered retirement taxes. In the United States we pay into a social security system that provides income to retired workers from the general fund. Our tax is regressive as we all pay the same rate up to a specific cap. Then all income above the cap is not taxes.

11) Tariffs

An import or export tariff is one that is paid by the movers of any good through a political border. Typically, it is used to “encourage” local businesses and “discourage” the purchase of foreign goods, by increasing the price for the foreign goods. Consider this when you are looking at buying a car as tariffs can increase the cost of a vehicle manufactured outside the U.S.

12) Tolls

Tolls are fees charged to drivers who cross through designated bridges, tunnels, and even some roads. They are almost always paid in fixed amounts each time you drive pass through the restricted area. Tolls are typically used fund state projects but can also be used for privately funded projects.

Day 1

Blogged with the Flock Browser