Tax Laws In America

Answer 1

The United States is a nation owned by its citizens. This means that any services provided by the federal government are paid for through the collection of taxes. State, county and local jurisdictions may also have tax collection programs to cover the costs of services not funded by the federal government. By law these taxes are mandatory and individuals as well as companies must file a tax return each and every year.

Federal Laws On Payroll Taxes

The federal government imposes payroll taxes on businesses and their employees. Employers must deduct taxes from their employee's payroll checks. These deductions include Social Security and Medicare as well as federal income tax. Each year employers must report the total amounts deducted to the federal government and provide employees with a statement containing the amounts deducted. Employees are required to report their total earnings and all taxes withheld to the federal government. The deadline for filing a tax return is on or around the 15th of April for the previous tax year.

Taxpayer groups are divided into numerous categories. These include individuals, businesses, trusts, estates and quasi-public agencies. The federal government imposes taxes on income, held property, imported goods, sales of certain merchandise or services, inventory and corporate profits. Taxes Imposed By State Governments

Each state has the right to impose taxes on income and property. Some states have a school tax, business ownership tax or sales tax. Depending on what is contained in the state constitution, taxes may require voter approval or a simple vote in the legislature. State income tax as well as sales tax is used to fund state government projects not covered by federal government assistance. These taxes also pay the wages of state employees and members of the state congress.

Local Community Taxes

Each city or municipality can impose taxes on the residents living within the legal boundaries of the community. School taxes are usually imposed on residents because most communities have their own independent public school district. Sales taxes created at the state level may be adjusted in a particular community to help pay for city utilities, libraries, city government property, local law enforcement and fire response services.

Tax laws apply to non-U.S. residents as well. Those living in the United States but holding citizenship in Another Country are subject to income tax for wages earned through a domestic business. State sales taxes are collected on purchases, therefore non-citizens will be paying these taxes in any local jurisdiction where the tax is imposed.