A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent. The first known taxation took place in Ancient Egypt around 3000–2800 BC.
Most countries have a tax system in place to pay for public, common, or agreed national needs and government functions. Some levy a flat percentage rate of taxation on personal annual income, but most scale taxes based on annual income amounts. Most countries charge a tax on an individual's income as well as on corporate income. Countries or subunits often also impose wealth taxes, inheritance taxes, estate taxes, gift taxes, property taxes, sales taxes, use taxes, payroll taxes and/or tariffs.
In economic terms, taxation transfers wealth from households or businesses to the government. This has effects that can both increase and reduce economic growth and economic welfare. Consequently, taxation is a highly debated topic.
Suppose that in a monopoly game (board game), a player passed through Go and receive $2000 as salary. Then he landed on Income Tax and he paid $2000 too. It means that he paid 100% tax rate, in other words he paid all of his salary only for the tax.
What the effects and implications...
AUTHOR: William Ahern, Director of Policy and Communications, The Tax Foundation
Ed. Note: Our Fiscal Future has invited distinguished guest bloggers to share their views about how to get the nation on a sustainable fiscal path. The views presented are their own, and do not necessarily...
Any insurance is, essentially, a gamble. Someone (a company) with more money than us is prepared to gamble, offering a huge stake (the payout) against our small stake (the premium). The Insurer works out the probability of a payout and calculates the premium that they want so that they make a...
I heard from a source I would usually consider reliable on this matter that the top US income tax rate was going to be increased from 35 to 39% (not this year but in a few). Is this true? I wasn't able to find anything online in a brief search.
I am wondering if anyone here could provide some information about filing taxes as a student? It's my first year doing it, and I am wondering what tax breaks I am eligible for. I have been reading [PLAIN]"this"[/URL] but I'm not quite sure which items I benefit for and which will give me the...
I wanted to address what I see as a fallacy in the argument against taxes on companies and corporations. As the the saying goes, if you tax companies, they will just pass along those costs to consumers. While that may be true in some cases, it is not always true. The fact is that I have to...
What percentage of gross national product do we feel government should consume? And conversely what percentage should be left in the control of individuals?
I would say that 10% for the federal level and 10% for the state level and 10% for all other levels would be reasonable. That is 30%...
I found an apartment cheaper than the one I'm currently in. Its around $500.00. I was just wondering if the tax rates for housing decreases with lower apartment costs -- do they? Also, what would the overall cost estimate to be (including taxes)?
I'm trying to solve a 3 part problem which has the following questions:
a) Determine the rate of return before taxes.
After Solving: Answer: 21 %
b) If the effective income tax rate is 42 percent, what is the approximate after-tax rate of return?
After Solving: Answer: 8 %...
Who would have though that our "socialist" country would be labeled as such.
I am sure that this will be rectified soon.
So what is the deal with this?
On their commercials they show people who claim they had drastic reductions in their tax debt. One says that he owed over $130,000 and had his tax liability reduced by over $90,000. What's with that?!?!?! Can I just neglect...
He is one of the innocent Obama appointees. The idea here is that you put a gps in your car that records how many miles you've traveled. Then when you go to the gas station, they read the gsp and you pay based on the number of miles you have...
The "FairTax" in place of income tax
First of all; I'm not interested in any sort of partisan quibbles as they often degenerate into arguments that go nowhere. People will subscribe to what they subscribe to... I'm just putting this out there to get your thoughts and perhaps to make you aware...
does anyone know the formula to back out sales tax from a gross total - I am an auditor and I need to back out sales tax ie:
gross sales 50,859.18 - this total includes sales tax at 12.25% - i need the formula to back out the sales tax form the gross sales - ANy one know??
A book I was reading advocated that anyone who was interested in buying land in a rural area find out how much the property taxes on the land are before buying any land.
How does one find out what the property taxes will be for a given amount of land?
This is the last thing the US needs to be worrying about. When he said that he's wanting to better relations with other countries, how did I know that it would also end up costing the US money for these 'improved relations'?
This man is going to tax us to death.
Obama bill: $845 billion...
Have you been hitting the glass ****?! I live in the state with one of the highest minimum wages, highest state revenues, and the biggest economy in the union but I would be more than welcome to make half of what you consider 'middle class'. Even a quarter of it. I could live quite...
Woohoo, according to this, my check will be direct deposited into my bank account before May 5th. :approve: (I took the direct deposit option).
The link has a schedule of dates.
I thought this was particularly interesting as it breaks down the US budget in terms of the dollar per item per household. It is often quite striking when one compares the amount spent on various...
A child is surprised that she must pay $1.40 for a toy marked $1.25 because of sales tax. What is the effective tax rate on this purchase?
The Attempt at a Solution
I know that the difference between the two is .15. I could...
The question of who to "place" a tax on is often brought up in policy debates. For example, people often ask, "Should we impose the tax on the producer or consumer?" or "Should we impose the tax on the employer or employee?"
In reality, this is pretty much a trivial question, because in...