Need help with my Accounting question – I’m studying for my class.
say something about what you think first, and give response to other.
1. discussion topic: Describe and discuss the various ways a dollar is taxed in the USA.(300 words )
2. Here is a student’s answer, please read and response.
There are MANY ways a dollar is taxed in the United States and each way fits into 6 main categories that I can think of. These broad categories include income, consumption, payroll, property, tolls, and tariffs. Income tax is the biggest category and is calculated by multiplying a taxpayer’s taxable income by their respective tax rates. This category includes, but not limited to, earned income, capital gains, dividends, gifts, inheritance, etc.. Consumption taxes are taxes applied to goods and services and includes taxes such as excise, sales, value added, and use. Payroll taxes are taxes that are applied to both employees and employers and support government social programs such as social security and Medicare. Property tax is a tax imposed based on the assessed value (ad valorem) of a taxpayer’s property/land. Tolls are taxes imposed to use government infrastructures, such as roads or bridges, and are only collected from those taxpayer’s that use these infrastructures. Tariff’s are taxes imposed on international trade and are paid by foreign governments rather than U.S. citizens.