6-Economics-Macroeconomics-Government Actions-Tax

tax types

People pay money to government in many forms {tax, types}. Taxes include capital-gains, excise, export, import, sales, turnover, and withholding taxes. Income tax can be on personal or business revenue. Estate tax can be on wealth at death. Property tax can be on real estate holdings. National taxes are income and value-added taxes. State taxes are income taxes, excise taxes, and sales taxes. Local taxes are property taxes. Taxes can be regressive or progressive.

capital gains tax

Taxes {capital gains tax}| can be on capital gains over more than one year {long-term capital gains tax} or less than one year {short-term capital gains tax}.

excise tax

Taxes {excise tax}| can be on each item or service.

export tax

Taxes {export tax}| can be on goods sent to foreign countries.

import tax

Taxes {import tax}| can be on goods purchased from foreign countries.

sales tax

Taxes {sales tax}| can be a percentage, typically 3% to 8%, of retail purchase price, usually excluding food.

turnover tax

Taxes {turnover tax}| can be on buying and selling goods or services.

withholding tax

People typically must send income percentage {withholding tax}| to government to pay future taxes. Employers typically send paycheck percentage to government.

6-Economics-Macroeconomics-Government Actions-Tax-Types

progressive tax

Taxes {progressive tax}|, such as income taxes, can assess at higher rates for higher incomes or wealth. They take lower percentage of income or wealth from lower-income people.

regressive tax

Fixed percentage taxes {regressive tax}|, such as sales and property taxes, take more value from lower-income people than from higher-income people. These taxes reduce consumption more than savings.

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Date Modified: 2022.0225