In the US government, taxes are collected by the Internal Revenue Service (IRS), which is responsible for administering the tax laws and regulations. Taxes are used to fund government programs and services, such as national defense, education, healthcare, infrastructure, and social welfare.
There are several types of taxes in the US, including:
Income tax: This tax is based on a person's income and is usually withheld from their paycheck by their employer. The amount of income tax a person pays depends on their taxable income, which is the amount of money they earn after deductions and exemptions.
Sales tax: This tax is levied on goods and services at the point of purchase. Sales tax rates vary by state and local jurisdiction.
Property tax: This tax is based on the value of real estate or other property that a person owns. Property tax rates vary by location and are used to fund local government services, such as schools and public works.
Corporate tax: This tax is levied on the profits of corporations and other business entities.
The US tax system is progressive, which means that people with higher incomes pay a higher percentage of their income in taxes than people with lower incomes. This is achieved through a system of tax brackets, where people with higher incomes pay a higher tax rate on the portion of their income that falls within that bracket.
Tax laws and regulations are subject to change, and taxpayers are required to file tax returns and pay their taxes on time. Failure to do so can result in penalties and interest charges.
~~~Harsha~~~