Taxation is an inescapable reality. It is as sure as death. Taxation knows not gender, race, social status, or income level. Every American whether he is rich or poor has to face taxation, in one way or another. Taxation affects people from the different walks of life, without fear or favor. As a matter of fact, it is accurate to conclude that taxation is the great equalizer. Every American is equal in the face of taxation. Every American in Cocoa Beach, Florida, has to pay the various Cocoa Beach Taxes. Even the dead are affected by taxation because of estate tax.
The concept of taxation is noble in every sense and respect. Taxation facilitates a functional society. The government of America needs money so that it can run. The Armed Forces of America protects the country from external aggression. They require financial resources to be able to do that. Civil servants have to be paid. Taxation finances all these activities.
Personal income tax is the most basic tax in the United States of America. This has to be paid by everyone who earns a salary. People who earn an income that is below a certain level are usually exempt from this taxation. The amount of taxation to be paid depends on the amount of income that an individual earns.
Corporation tax has to be paid on the profits earned by a company. As a matter of fact, companies in America usually make massive profits because of the various systems and infrastructure projects that have been put in place by the government. Thus, it makes sense for these companies to pay taxes because they are direct beneficiaries of government projects.
Another kind of tax is withholding tax. This is paid on dividends. If a public or private company makes a profit, the board of directors can decide to pay dividends to shareholders according to their shareholding. Before the dividends are disbursed, withholding tax will first need to be deducted and paid to the Internal Revenue Service (IRS) of America.
Value Added Tax (VAT) is a very basic tax. It will affect an American even if he does not earn an income. For every product that is consumed, one has paid VAT. People hardly notice this tax. That is due to the fact that it is not paid directly out of the pocket. It is an indirect tax included in the price.
Many people in America and other countries usually find taxation to be burdensome. That is because of the high cost of living. The good news is that it is possible to reduce taxation that has to be paid at the end of the day. To legally reduce taxation, one needs to take advantage of the various tax avoidance strategies.
Every year, the Internal Revenue Service of United States of America usually comes up with a taxation calendar. This contains the most important dates that every taxpayer needs to know. A taxpayer should take note of the deadline for filling returns. If one does not submit his returns by the deadline, he will need to pay a penalty.
The concept of taxation is noble in every sense and respect. Taxation facilitates a functional society. The government of America needs money so that it can run. The Armed Forces of America protects the country from external aggression. They require financial resources to be able to do that. Civil servants have to be paid. Taxation finances all these activities.
Personal income tax is the most basic tax in the United States of America. This has to be paid by everyone who earns a salary. People who earn an income that is below a certain level are usually exempt from this taxation. The amount of taxation to be paid depends on the amount of income that an individual earns.
Corporation tax has to be paid on the profits earned by a company. As a matter of fact, companies in America usually make massive profits because of the various systems and infrastructure projects that have been put in place by the government. Thus, it makes sense for these companies to pay taxes because they are direct beneficiaries of government projects.
Another kind of tax is withholding tax. This is paid on dividends. If a public or private company makes a profit, the board of directors can decide to pay dividends to shareholders according to their shareholding. Before the dividends are disbursed, withholding tax will first need to be deducted and paid to the Internal Revenue Service (IRS) of America.
Value Added Tax (VAT) is a very basic tax. It will affect an American even if he does not earn an income. For every product that is consumed, one has paid VAT. People hardly notice this tax. That is due to the fact that it is not paid directly out of the pocket. It is an indirect tax included in the price.
Many people in America and other countries usually find taxation to be burdensome. That is because of the high cost of living. The good news is that it is possible to reduce taxation that has to be paid at the end of the day. To legally reduce taxation, one needs to take advantage of the various tax avoidance strategies.
Every year, the Internal Revenue Service of United States of America usually comes up with a taxation calendar. This contains the most important dates that every taxpayer needs to know. A taxpayer should take note of the deadline for filling returns. If one does not submit his returns by the deadline, he will need to pay a penalty.
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