Income Taxes
When you get your paycheck at the end of the first pay period at a new job, it's always interesting to see your net pay. Most of us expect more than we get. By the time you get your check, it has been cut up like a piece of pie, with several entities taking a piece of the pie. The entities that take money differ from person to person, company to company and state to state. However, almost every income earner has to pay federal income tax.
An income tax is a tax levied on the financial income of persons, corporations, or other legal entities. Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual, with some deductions permitted, while corporate income taxes often tax net income which is the difference between gross receipts, expenses, and additional write-offs. (Rubin, 2007)
We generally don't think much about taxes except during the annual tax season. It's probably the most dreaded time of the year for millions of Americans, yet we circle it on our calendars along with holidays and birthdays. But little joy is connected to April 15, which is the deadline for filing tax forms; this deadline doesn't always fall on the 15th.
The tax system is a huge machine with a tax code that seems more complex than rocket science. Examination of how individual income taxes work and a look at the history of income taxes in the United States will be discussed.
The "tax net" refers to the types of payment that are taxed, which included personal earnings, capital gains, and business income. The rates for different types of income may vary and some may not be taxed at all. Capital gains may be taxed when realized (e.g. when shares are sold) or when incurred (e.g. when shares appreciate in value). Business
An income tax is a tax levied on the financial income of persons, corporations, or other legal entities. Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual, with some deductions permitted, while corporate income taxes often tax net income which is the difference between gross receipts, expenses, and additional write-offs. (Rubin, 2007)
We generally don't think much about taxes except during the annual tax season. It's probably the most dreaded time of the year for millions of Americans, yet we circle it on our calendars along with holidays and birthdays. But little joy is connected to April 15, which is the deadline for filing tax forms; this deadline doesn't always fall on the 15th.
The tax system is a huge machine with a tax code that seems more complex than rocket science. Examination of how individual income taxes work and a look at the history of income taxes in the United States will be discussed.
The "tax net" refers to the types of payment that are taxed, which included personal earnings, capital gains, and business income. The rates for different types of income may vary and some may not be taxed at all. Capital gains may be taxed when realized (e.g. when shares are sold) or when incurred (e.g. when shares appreciate in value). Business