Types of Taxes

Paying Taxes
Taxes are monies paid by citizens and residents to federal, state, and local
governments. The money collected from these taxes helps fund for services
provided by the government. It is one of the main sources of government
revenue. Types of taxes include income tax, sales tax (VAT), and property tax.
Income Tax
These are paid on a federal level and in some cases to state or local
governments as well. “Taxable income” is essentially money obtained through
wages, self-employment, and tips and from things like sale of a property. The
large majority of people pay their income taxes by having the money withheld
from their paychecks. The proportion of income tax an individual is required to
pay will vary according to earnings. Income tax rates are generally lower for
those who make less money. However, any individual who earns an income,
live in the United States and satisfies certain criteria is needed to file a tax
return and also pay any taxes that they owe.
Value Added Tax (VAT) or Sales Taxes
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.
Property taxes
These are also state and local taxes that are charged on your home and land. In
In most situations, these property taxes contribute to the funding of local public
schools and other services in the area person.
This is a concept summary. It aims to show how different types of taxes are
categorized, and highlighted the strong and weak points of each type.
The government is supported by resources drawn from the economy.  In return,
the government protects the economy from foreign and domestic enemies,
undertakes large-scale infrastructure works of general benefit, and enforces the
rights, obligations and bargains necessary for economic activity in a civil
society.  In modern industrial society, a tax either claims a portion of the flow
of value in economic transactions between people, or takes a part of someone’s
accumulated stock of economic value.