3 Types of Taxes Explained
Taxes are some of the things that irk people every time they are levied on them. Unfortunately, they are here to stay as the fees levied by the government are used to keep its wheels running which of course benefits the citizens.
Running a country, county, or even city or state isn’t cheap therefore the taxes have become steeper with time. Every state and city may have different types of taxes or levy fees like parking fees but some remain constant, here in Atlanta, income tax lawyers can confirm the same.
The following are the most common types of taxes that are found the world over and that you should be aware of:
This is levy collected by the federal and local government on one’s gross income whether business or personal. With a progressive tax bracket, it therefore follows that the more you earn the higher the tax rate. Employers are mandated by the government to deduct payroll taxes from their employees’ pay check on every pay day usually between 10%-35% depending on the income earned.
This is tax imposed on owners of real estate property like building and interests in land ownership that are paid periodically either monthly or on a yearly basis. The tax varies from time to time usually assessed by the market value of the property its location and condition it’s in.
Property doesn’t only include land and buildings, other assets that fall into this category include cars, recreational vehicles, boats, airplanes and factories. Authorities and schools have separate levies.
This type of tax is imposed on the retail price of goods and services and varies from goods to goods, some are 0 rated but others can be taxed as high as 16%. The tax is automatically deducted after purchase of the good or service by the seller. Custom duty is also a form of tax that is levied on persons importing goods. The type of goods and the country they are originating from determine the amount of tax to pay; the bracket is usually between 0% and 20%.
Different Types of Taxes Can Vary with Location
There are more taxes which vary from state to county to city just make sure to keep up with them as penalties are imposed on late filing. It is easy to assume that the problem will go away which is never the case. Taxes are unavoidable and thus are a must pay, a pile up of tax dues can become a nightmare for you if ignored
In Atlanta, Income tax lawyers are competent enough help you sort out your tax mess. Failure to file the required taxes levied results in the IRS getting involved which can land you in court facing a tax violation charge.
For more on tax laws for both private individuals and business owners, visit www.irslawproblems.com and read through and find the help you need for that tax problem.