Friday, February 15, 2013

Type of taxes which Americans pay

There is also a saying that 'nothing is certain but death and taxes'.
So taxes are certain and there is the list of 12 taxes which American
need to pay.

1) Income Taxes
Income tax is the main tax in the United States as most of the
Americans divert to income tax while hearing the word tax. The reason
is simple. American pays as much as 35% of their income as income tax
which is very heavy. So income tax is the main tax in America.

2)Business Taxes

Also known as corporate taxes, these are direct taxes levied on the
profits of businesses. Expenses that are deemed necessary to the
business can usually be deducted to lower the amount of profits
subject to taxation.

3) Payroll Taxes : Payroll taxes are the taxes which employees pay
from their wages. The employer must cut the tax amount to their wages
and pay to the government of America. Some payroll taxes include
federal withholdings, disability insurance, Medicare, and other state

4)Capital Gains Taxes
Capital gains are the income generated from sale of an assets or
stock. Capital gains are generated from the sale price deducting to
the purchase price of any stock or property. In the United States a
tax is levied on all income generated from a taxpayer's capital gains.
Alternatively, if a taxpayer suffers from capital losses they can
deduct the full loss amounts. The most common capital gains are
created from the sale of stocks, bonds, and property.

5) Inheritance Taxes:-The inheritance tax is the tax which is also
known as death tax. Any property transferred due to death of a
taxpayer is inheritance tax. However, when they are left to a spouse
or a charity, the tax usually does not apply.

6) Consumption tax:-Consumption taxes –consumption tax are also known
as sales tax. Sales tax levied on the point of purchase to different
goods. The rate of consumption tax are different to different goods
and the location wise as due to large area the state and local
authority charge sales tax at different level.

7) Property Taxes:-Property taxes are the taxes which are imposed on
the assets and properties for the ownership. These taxes levied on
different types of assets like real estate as well as some personal

8) Excise Taxes:-Excise taxes are the taxes which are taxed on product
cost. The same as in India excise taxes are on manufacturing units and
the tax rate are high. Excise taxes are high on some products as well
as some products are free from excise whereas some products have some
exemption limit in America.

9) Gift Taxes:-A gift tax is the tax which is taxed of transfer the
property from one hand to another. Gift is considered to some value
products to be transferred with no cost or less than actual cost.
There is gift tax in America but a few exemptions thereon.

10) Retirement Taxes:-Retirement tax is those which are levied on
taxpayer retirement in America.

11) Tariffs:-In India it is also known as custom duty. Tariffs are the
tax which is levied on import and export of the goods. In America the
import duty is high whereas export duty is low to encourage domestic
manufactures and to increase the prices of foreign goods.

12) Tolls:-Tolls are the fees or the tax which is charged when some
vehicle cross specific boundary or some bridge which is very costly in
view of manufacturing. Every time the vehicle crosses the toll it
needs to pay a specific amount of money as the fees of toll or tax.

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