Types of Taxes Americans are Paying!

A state or country is made up of different factors. These factors could be called roots that give life to a state or country.

One of the most important factors among all is taxation. Taxation of the country determines how good governess they have. This is why we usually pay different types of taxes.

These taxes aid in people's ease and help those who are not able to pay for themselves. For instance, there are different governmental health programs that help the poor get a healthy life without paying a single penny.

A remarkable step toward health is the “Insaaf Health Card” by the Government of Pakistan. There is no one in the world who is offering such an amount for medical and health issues.

There are also many other welfare programs and country betterment. It all comes from the proper spending of taxes collected from the nation.

Most of us don’t know the different types of taxes. So today we are going to mention different types of taxes which would help you out in understanding and next time paying without any worry.

• Income tax

The first and most common type of tax is the income tax. This tax is not levied on everyone. So we shouldn’t be worried about it. Usually people threats after listening to this tax. This type of tax is only levied to those who are earning more than the mentioned criteria.

Government considers the need of the hour and then sets the limits to ask for income tax. So if you are falling on the criteria, do pay your income tax as it helps other needy people in different programs.

• Property tax

Property taxes are usually applied over the profits you gain from selling assets. For example, if someone is doing the business of property selling and buying, he might pay the taxes. It is also charged for those who have multiple properties.

This tax varies if you are going to be a filer or non-filer. Also, the ratio of tax varies if you are going to get filer for a longer-term or shorter term. You can consult an expert for this tax and get your business smoother.

• Corporate tax

The third one and easier to pay is corporate tax. This tax is applied to those companies which are registered as corporate companies. These companies are paying some of the amounts every month. This amount could be either per employee or as a whole.

There are different ratios of charges in different countries. But if you are running a startup and want to secure it, go for this tax. It would open multiple benefits for you and your employees.

• Sales tax

Sales tax is the only type of tax that we all pay unknowingly. This tax is already applied over all the items we purchased either for selling or buying from shops. The amount we pay is a total by including the sales tax on that item. So this tax is already being paid by everyone.

• Service Tax

Service tax is also a minor type of tax that is being paid by everyone. It doesn’t matter if you know or don’t know but you are paying for it.

Did you ever bother with your internet bill? Have you ever checked your calling card amount? They all are including service tax. Also, the calls and messages we sent and received are charging a total amount that is the sum of service tax and original price.

There are many other types of taxes. But these are some of the basic taxes we all pay. No matter where you are living these taxes are supposed to be paid. So, be a responsible citizen, pay your taxes and let others grow with you.