Taxation is an inescapable reality. It is as sure as death. Taxation knows not gender, race, social status, or income level. Every American whether he is rich or poor has to face taxation, in one way or another. Taxation affects people from the different walks of life, without fear or favor. As a matter of fact, it is accurate to conclude that taxation is the great equalizer. Every American is equal in the face of taxation. Every American in Cocoa Beach, Florida, has to pay the various Cocoa Beach Taxes. Even the dead are affected by taxation because of estate tax.
The various taxes finance government activities. Without taxation, the running of the government will come to a grinding halt and chaos will be the order of the day. Democracy is the best system of governance on earth. However, it is not cheap. Running a democratic government requires a lot of money. Elected officials and civil servants must be paid salaries every month.
In America, there is income tax. Most Americans who are above the age of 18 years usually earn an income at the end of the month. America is made up of hardworking people who go to work early in the morning and return home late in the evening. From the salary earned, a small amount is deducted as income tax.
On one hand, there is income tax. On the other hand, there is corporate tax. All these taxes are levied on income. The only difference is that corporate tax is levied on the income of a business. Small, medium-sized as well as large businesses in America all have to pay tax on the profit earned at the end of the financial year.
Another kind of tax is withholding tax. This is paid on dividends. If a public or private company makes a profit, the board of directors can decide to pay dividends to shareholders according to their shareholding. Before the dividends are disbursed, withholding tax will first need to be deducted and paid to the Internal Revenue Service (IRS) of America.
Even if one is not affected by the other taxes, he will definitely be affected by Value Added Tax. As a matter of fact, VAT affects Americans from the different walks of life. It knows not race, gender, income level, and social status. Every American is a consumer. He uses goods and services. All products are subject to VAT.
There is the need to be a smart taxpayer. Often times, taxpayers with the best information usually end up paying less taxation. One needs to be informed about the legal loopholes that he can take advantage of so that to be able to reduce the taxation burden. Taxation avoidance is totally legal. However, taxation evasion is a serious economic crime in America.
There is the need to prepare tax returns and submit them on time. There is usually a deadline for submitting returns. Failure to honor the deadline will lead to penalties. Over time, the penalties can accumulate to an unbearable level. After submitting returns, one should proceed and make the necessary taxation payments to the bank account of Internal Revenue Service.
The various taxes finance government activities. Without taxation, the running of the government will come to a grinding halt and chaos will be the order of the day. Democracy is the best system of governance on earth. However, it is not cheap. Running a democratic government requires a lot of money. Elected officials and civil servants must be paid salaries every month.
In America, there is income tax. Most Americans who are above the age of 18 years usually earn an income at the end of the month. America is made up of hardworking people who go to work early in the morning and return home late in the evening. From the salary earned, a small amount is deducted as income tax.
On one hand, there is income tax. On the other hand, there is corporate tax. All these taxes are levied on income. The only difference is that corporate tax is levied on the income of a business. Small, medium-sized as well as large businesses in America all have to pay tax on the profit earned at the end of the financial year.
Another kind of tax is withholding tax. This is paid on dividends. If a public or private company makes a profit, the board of directors can decide to pay dividends to shareholders according to their shareholding. Before the dividends are disbursed, withholding tax will first need to be deducted and paid to the Internal Revenue Service (IRS) of America.
Even if one is not affected by the other taxes, he will definitely be affected by Value Added Tax. As a matter of fact, VAT affects Americans from the different walks of life. It knows not race, gender, income level, and social status. Every American is a consumer. He uses goods and services. All products are subject to VAT.
There is the need to be a smart taxpayer. Often times, taxpayers with the best information usually end up paying less taxation. One needs to be informed about the legal loopholes that he can take advantage of so that to be able to reduce the taxation burden. Taxation avoidance is totally legal. However, taxation evasion is a serious economic crime in America.
There is the need to prepare tax returns and submit them on time. There is usually a deadline for submitting returns. Failure to honor the deadline will lead to penalties. Over time, the penalties can accumulate to an unbearable level. After submitting returns, one should proceed and make the necessary taxation payments to the bank account of Internal Revenue Service.
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