Tax is like devil – if you think so it is not 100% true. The government is formed by the people and for the people. The objectives set out in the budget are nothing but for the wider development of the public at large and there is no bias in doing so. The United States has its own way of governing taxes guided by federal, state or local authority. Read more at https://www.taxreturn247.com.au
What is a tax?
The tax is revenue collected by the government and an expense for the person. The taxes become an investment for the public at large if the purposes for which taxes are collected achieved by the government. However, it is not possible to always achieve the very purpose of the tax collection because the economy undergoes political, social or geographical changes. Therefore, the development of the economy is not an event but a process. Everyone including government has its own role.
What are the types of taxes?
The taxes are either direct or indirect. The direct taxes are collected directly from a person and on the other side the burden of indirect taxes is levied on the final consumer but paid by the intermediaries. Direct taxes and indirect taxes account for their own significance in the budget. The direct taxes affect the routine income and wealth of the person or entity paying them. While indirect taxes directly increases the price of goods and services. Click here to read more info about types of taxes.
What are the theories of taxation?
The theories of taxations are the rationale behind the introduction of taxes. Law and logic may not coincide, but one has to understand that the government, like anyone who prepare a budget, has its own objectives to achieve and in the given time frame and the environment. Generally, there are two theories of taxation – who will benefit (called benefits theory) and who is affected by the introduction of tax (called ability theory).
Income tax: Income tax is a direct tax paid on income earned. The definition of who is required to pay income tax is specifically defined. The persons responsible for paying income tax are individuals, corporations and other entities. When the concept remains same, the tax mechanism of all such person differs.
Payroll taxes: The payroll taxes are also direct taxes deducted from the wages paid to employees. Both employers and employees …