Question

Explain three reasons why state and local tax differs from federal tax.

Answer 1

From the very beginning, the right of local and state taxation has been maintained. When the Constitution was adopted, the federal government appears to have been entrusted with the right to impose taxes. While prohibited by the US state constitution, states retained the right to impose other types of taxes.

In today's situation, states receive the revenue they need to maintain the government by collecting taxes. They pursue public services through citizens' revenue and taxes from the federal government. Examples of this service are school, police, health and other benefits.

Applicable to sales tax in many states, in many states during the years 1949 to 1949, it is seen that the additional tax is required to spend on public service.

Federal Income is collected by a corporation under a city, state or country in which it is operated or operated. Federal tax is the amount of tax collected when the tax is credited to the country's account. U.S. Explains Federal Income Tax Rules There were several significant changes under the Revenue Code २०१८ Tax Deduction and Employment Act (TCJA) ratification.