As a citizen, it is important that we understand the types of government taxes. This is because of many different reasons – one of which is that we pay these taxes and you wouldn’t want to pay for something that you do not even understand. This being said, read on and get to know the many types of government taxes that you are paying or will be paying for.
The personal income tax is the most common of all types of government taxes. This is the tax that working people pay. This is basically the tax that you pay that comes from the money you work really hard for. There are people who pay big income taxes. There are some who pay little. The truth is that the amount that you pay with regards to the income tax depends on how much you are paid as well.
Corporate income taxes are types of government taxes that are paid by the corporations. These taxes are computed basing on the amount of income that these corporations get. Most often, there is a flat rate of these corporate income taxes. However, there are still other states that base the amount that they ask corporations to pay basing on the income that they got for a certain period of time.
Sales taxes are types of government taxes that are paid for services and goods that are sold. Often times, these types of government taxes are paid on a fixed or set rate. But technically, every time you buy something you will be asked to pay sales tax.
Luxury taxes are types of government taxes that are paid for luxuries. There is a long list of luxuries that you would be asked to pay your luxury tax for. This long list includes jewelries, luxury vehicles, and many others.
Use types of government taxes are those that you pay for storage services. If you hired storage services or leased items, you will be asked to pay use tax. If you rent a car or an apartment, then you will be asked to pay for use taxes as well. Goods that come from the United States that are shipped out are also considered as things that you pay used taxes for.
Property taxes are types of government taxes that you pay for owning properties. There are many kinds of properties that will require property tax payments. This long list includes vehicles, land, homes, and other properties. Factories and even other commercial properties are part of the property taxes as well.
Sin taxes are types of government taxes that are paid for goods and services that are considered to be a sin to take but legal. The most common good that will require you to pay sin tax would be alcohol and cigarettes. Gambling also counts for sin taxes as well as vehicles that are known to pollute the air.
Tariffs are taxes that are paid when people leave or enter a country. Often times, these are included in the travel packages that you pay for when you go out of the country.