9 Types of Taxes in the US
Study online at https://quizlet.com/_etvsor
1. Sales Tax -used by states and local gov't to raise revenue
-states w/o general sales taxes (Alaska, Delaware, Montana, NH, Oregon)
2. Sin Tax -upon luxury goods
(Luxury cars, jewelry)
-"vice" items that are dangerous to ones health (imposed to discourage people
from patronizing certain products
(Tobacco, alcohol)
3. Travel Tax -gov't mandated transport tax for US travelers
-used to fund the federal aviation administration (FAA)
-airlines charge 7.5% tax on base airfare
4. Capital Gains Tax -imposed on profits made from investments
-sale of real estate properties
-long term capital gains are taxed at a lower rate
-short term capital gains are taxed at the same rate as income tax
5. Inheritance/Es- -paid on the transfer of properties from a deceased person to his heirs
tate Taxes -paid by the heirs
-prevents the transmission of tax-free wealth in America's most affluent families
6. Income Tax -required of all workers, regardless of employment status
-largest source of revenue for the gov't
7. Value-Added Tax -placed on the added value of goods from production to point of sale
-in the US, only Michigan imposes VAT called the Michigan business tax
8. Payroll Tax -the percentage of an employee's salary that i remitted to the gov't
-inclusive in this tax are contributions to:
-Medicare, social security, disability, unemployment, retirement
9. Property Tax
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Study online at https://quizlet.com/_etvsor
1. Sales Tax -used by states and local gov't to raise revenue
-states w/o general sales taxes (Alaska, Delaware, Montana, NH, Oregon)
2. Sin Tax -upon luxury goods
(Luxury cars, jewelry)
-"vice" items that are dangerous to ones health (imposed to discourage people
from patronizing certain products
(Tobacco, alcohol)
3. Travel Tax -gov't mandated transport tax for US travelers
-used to fund the federal aviation administration (FAA)
-airlines charge 7.5% tax on base airfare
4. Capital Gains Tax -imposed on profits made from investments
-sale of real estate properties
-long term capital gains are taxed at a lower rate
-short term capital gains are taxed at the same rate as income tax
5. Inheritance/Es- -paid on the transfer of properties from a deceased person to his heirs
tate Taxes -paid by the heirs
-prevents the transmission of tax-free wealth in America's most affluent families
6. Income Tax -required of all workers, regardless of employment status
-largest source of revenue for the gov't
7. Value-Added Tax -placed on the added value of goods from production to point of sale
-in the US, only Michigan imposes VAT called the Michigan business tax
8. Payroll Tax -the percentage of an employee's salary that i remitted to the gov't
-inclusive in this tax are contributions to:
-Medicare, social security, disability, unemployment, retirement
9. Property Tax
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