Question

describe seven types of taxes that are imposed upon citizens of the United States.

Answer 1

The seven types of taxes that are imposed upon United States citizens are:

-- Income Taxes: These taxes are levied on the money a person earned. Federal income taxes are both progressive as well as marginal. Marginal states that there are different taxation rates for different income brackets. The top earners are required to pay a high tax rate, however only on the amount of money they have in that top bracket.

--Excise Taxes: These taxes are paid by citizens of the United States when purchases are paid on a specific good. These usually include in the price of the good. Thus, when the good is subject to sales tax, citizens may be paying tax on a tax. Such taxes are difficult to avoid, and not often apparent. The most common example is federal gasoline excise tax.

-- Property Taxes: The property taxes are the oldest form of taxation in U.S. the funds often go toward local concerns, such as road maintenance, sewage treatment, and drinking water. These are computed based on the value of the property, which includes the land's value itself plus the value of any buildings that have on it, such as home.

--Capital Gains Taxes: These are the taxes on investment income after an investment is sold and a capital gain is earned. The main common capital gains are realized from the precious metals, sale of stocks, bonds, and property.

--Social insurance taxes: These are levied on wages and salaries, as well as income generating from self-employment

--Inheritance/Estate Taxes: These taxes are taxes paid after someone dies. It is paid from the net worth of the deceased and taxation is made on the privilege of passing the assets to heirs. There is a federal estate tax, and certain states also levy their own estate taxes. These taxes don’t exist at the federal level and are only law in a handful of states.

--Consumption taxes: Also known as sales tax, these taxes are more heavily levied on the wealthy in the way that the more a person consumes, the more will be taxed. Since this tax is assessed as a percentage of the sales price, it’s a simple equation: The more a person buys, the more need to pay.