Taxation is an unavoidable reality. Every human being has to face taxation. So long as one is alive, he will always be paying tax. It is only the dead who cannot pay tax. That is the reality. It is the truth. Taxation is not only found in the United States of America. It is also found in other countries all over the world including Canada, Mexico, the United Kingdom, the Peoples Republic of China, and South Africa, among others. It is only a handful of countries where there is no taxation. In Cocoa Beach, Florida, there are varied Cocoa Beach Taxes.
The various taxes finance government activities. Without taxation, the running of the government will come to a grinding halt and chaos will be the order of the day. Democracy is the best system of governance on earth. However, it is not cheap. Running a democratic government requires a lot of money. Elected officials and civil servants must be paid salaries every month.
Personal income tax is the most basic tax in the United States of America. This has to be paid by everyone who earns a salary. People who earn an income that is below a certain level are usually exempt from this taxation. The amount of taxation to be paid depends on the amount of income that an individual earns.
There is also corporation tax. This is paid on profits made by a business. The main goal of doing any business is to make a profit at the end of the financial year. That is the reason why businesses usually prepare a profit and loss account. The profit figure that is indicated at the end of this statement is subject to taxation.
There is also withholding tax. This targets dividends paid to shareholders. A company does not have to pay dividends. The discretion to pay dividends is on the hands of the board of directors. The board can decide to plough back profits to finance urgent company projects. If a decision is reached to pay dividends, there will be the need to conform to taxation rules.
Value Added Tax (VAT) is a very basic tax. It will affect an American even if he does not earn an income. For every product that is consumed, one has paid VAT. People hardly notice this tax. That is due to the fact that it is not paid directly out of the pocket. It is an indirect tax included in the price.
The American government recognizes that every citizen needs to pay taxation. However, the government is very sympathetic and recognizes that many Americans are facing hard financial times. That is the reason why the US government has provided many ways of legally reducing the taxation bill. Individuals should take advantage of reliefs. Companies should use tax breaks to reduce the taxation bill.
There is the need to prepare tax returns and submit them on time. There is usually a deadline for submitting returns. Failure to honor the deadline will lead to penalties. Over time, the penalties can accumulate to an unbearable level. After submitting returns, one should proceed and make the necessary taxation payments to the bank account of Internal Revenue Service.
The various taxes finance government activities. Without taxation, the running of the government will come to a grinding halt and chaos will be the order of the day. Democracy is the best system of governance on earth. However, it is not cheap. Running a democratic government requires a lot of money. Elected officials and civil servants must be paid salaries every month.
Personal income tax is the most basic tax in the United States of America. This has to be paid by everyone who earns a salary. People who earn an income that is below a certain level are usually exempt from this taxation. The amount of taxation to be paid depends on the amount of income that an individual earns.
There is also corporation tax. This is paid on profits made by a business. The main goal of doing any business is to make a profit at the end of the financial year. That is the reason why businesses usually prepare a profit and loss account. The profit figure that is indicated at the end of this statement is subject to taxation.
There is also withholding tax. This targets dividends paid to shareholders. A company does not have to pay dividends. The discretion to pay dividends is on the hands of the board of directors. The board can decide to plough back profits to finance urgent company projects. If a decision is reached to pay dividends, there will be the need to conform to taxation rules.
Value Added Tax (VAT) is a very basic tax. It will affect an American even if he does not earn an income. For every product that is consumed, one has paid VAT. People hardly notice this tax. That is due to the fact that it is not paid directly out of the pocket. It is an indirect tax included in the price.
The American government recognizes that every citizen needs to pay taxation. However, the government is very sympathetic and recognizes that many Americans are facing hard financial times. That is the reason why the US government has provided many ways of legally reducing the taxation bill. Individuals should take advantage of reliefs. Companies should use tax breaks to reduce the taxation bill.
There is the need to prepare tax returns and submit them on time. There is usually a deadline for submitting returns. Failure to honor the deadline will lead to penalties. Over time, the penalties can accumulate to an unbearable level. After submitting returns, one should proceed and make the necessary taxation payments to the bank account of Internal Revenue Service.
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