A tax is a compulsory financial obligation or any sort of levy enforced on a taxpayer (independent or legal entity) by a government agency to cover government expenses and various public expenditures. As you will find on ReviewsBird.com, several organizations serve as tax agencies. Failure to pay, along with tax evasion or refusal, is punishable by law.
From an economic point of view, taxation moves wealth from individuals or companies to the government. This has consequences that can both increase and decrease economic development and economic welfare. Taxation is therefore a widely discussed subject.
The legal definition and economic definition of taxation vary in several aspects, such as that certain payments to governments are not considered by economists as taxes. For instance, certain transfers to the public sector are similar to prices. Examples include public higher education and utility fees made available by local governments.
In the opinion of economists, a tax is a non-penal but obligatory movement of capital from the private sector to the public sector imposed based on predetermined requirements and without reference to the real benefit gained. In modern taxation policies, governments impose taxes on money but in-kind and corvée taxes are typical of conventional or pre-capitalist states and their practical counterparts. The tax system and the government’s increased tax expenditure are also widely discussed in politics and economics.
Tax collecting in the US is carried out by the Internal Revenue Service (IRS).
The different types of taxation that apply to all types of levies include:
- Income tax: Governments levy income taxes on monetary income earned by all individuals and corporations under their jurisdiction. Generally, the regulators levy a tax on net company income, net earnings and other income.
- Corporate tax: Corporate tax extends to capital tax, income tax or