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Which states have both sales tax and income tax?
The following do not pay local sales tax: Alaska Sales tax is that which has the tabular form in IRS site Income tax is that which is already withholded by any state etc
What is the main source income for most states?
sales tax
What is the main source of income for most states?
sales tax
What are three ways in which states tax their residents?
Sales Tax, Fuel Tax, Car Tax, Income Tax, ect
Are income tax payments deductible?
State income tax payments are deductible on your federal income tax return. (You may deduct state income tax or sales tax, but not both.) Federal income tax payments are deductible on your state tax return in a tiny number of states.
Are sales taxes important to state income?
Yes, in states which have a sales tax, it is a very important source of revenue.
How do states that do not collect state income tax pay for services that other states use tax money to pay for?
Generally it is all paid through sales tax revenues or similar taxes. You will notice that most states that do not have income tax have higher sales tax rates.ANSWER: The beauty of states that do not levy an income tax on the people is that it demonstrates how unnecessary income taxation actually is. While sales taxes are usually higher in these states these sales taxes can be defeated by simply not purchasing the items being taxed. The Internal Revenue Code makes clear that any attempt to defeat or evade the income tax is criminal and subject to prosecution and conviction leading to stiff fines and/or prison. Of course, that's assuming you are actually subject to the "Personal Income Tax". There are people who are subject to this law and people who aren't. Which are you?
What are the two largest sources of revenue for states?
The answer is sales tax and excise tax. Sales tax is charges on purchases of goods and services, usually a percentage of the price. Excise tax is a charge on products such as alcoholic beverages, gasoline, and tobacco.
Is Payroll Tax considered Income Tax?
Yes. Any tax on income is income tax. Taxes imposed after income, such as sales tax, aren't.
A sales tax on gasoline is and example of what type of tax?
The United States has a progressive tax method. This means that the more your earn to more tax percentage of your income you pay. This is a dangerous type of taxation in that we are approaching a time when almost 50% of the population pay no income taxes at all.
Is sales tax deductible from 2007 tax returns?
Sales tax is deductible as an itemized deduction (Schedule A), however you can deduct EITHER: -Sales Tax Paid -State income taxes paid Obviously you would want to deduct whichever is higher. This deduction can be very beneficial to people living in states that do not have an income tax, such as Florida.
Which state does not have either a sales or personal income tax?
Alaska does not have a state sales tax or personal income tax. However, some local government bodies in Alaska do impose a sales tax.
