The United States has a separate federal, state and local government (s) with taxes imposed on each of these levels. Taxes are imposed on income, salaries, property, sales, capital gains, dividends, imports, plantations and gifts, as well as various expenses. In 2010, taxes collected by federal, state and municipal governments accounted for 24.8% of GDP. In the OECD, only Chile and Mexico are taxed less as a share of their GDP.
However, much more taxes fall on labor income than capital income. Different taxes and subsidies for various forms of income and expenditure can also be a form of indirect taxation of some of the above activities. For example, individual expenditures for higher education can be said to be "taxed" at a high level, compared to other forms of personal expenditures that are officially recognized as investments.
Taxes are levied on individual and corporate net income by the federal government, most states, and some local governments. Citizens and residents are taxed on income worldwide and allow credit for foreign taxes. Taxable income is determined based on tax accounting rules, not financial accounting principles, and covers virtually all revenues from any source. Most business spend reduces taxable income, though the restrictions apply to some costs. Individuals are allowed to deduct taxable income with personal benefits and certain non-business expenses, including home mortgage interest, state and local taxes, charitable contributions, and other medical and fixed costs incurred above a certain percentage of revenue. The state rules for determining taxable income are often different from federal rules. Federal marginal tax rates vary from 10% to 39.6% of taxable income. State and local tax rates vary widely according to jurisdiction, from 0% to 13.30% of income, and many pass. State taxes are generally treated as a deductible expense for federal tax calculations. In 2013, the upper marginal income tax rate for high-income Californians will be 52.9%.
The United States is one of the two countries in the world that imposed taxes on residents of non-residents worldwide, in the same manner and rates as residents; the other is Eritrea. The US Supreme Court upheld the constitutionality of such taxation in the case of Cook v. Tait .
Payroll taxes are imposed by the federal government and all states. This includes the Social Security and Medicare tax imposed on employers and employees, at a combined rate of 15.3% (13.3% for 2011 and 2012). Social Security tax is only valid for $ 106,800 of the first wage in 2009 to 2011. However, benefits are only accrued at $ 106,800 in the first wage. Employers must withhold income tax on wages. Unemployment taxes and some other charges apply to employers. Tax payrolls have increased dramatically as part of federal income since the 1950s, while corporate income taxes have fallen as a share of revenue. (Corporate profits have not fallen as a share of GDP).
Property taxes are imposed by most local governments and many special-purpose authorities are based on fair property market values. Schools and other authorities are often separately regulated, and impose separate taxes. Property taxes are generally imposed only on realty, although some tax jurisdictions are some form of business property. The rules and rates of property taxes vary greatly with the average annual rates ranging from 0.2% to 1.9% of property values ​​depending on the state.
Sales taxes are charged by most states and some locations at prices with retail sales of many goods and some services. Sales tax rates vary greatly between jurisdictions, from 0% to 16%, and may vary within jurisdictions based on certain goods or services subject to tax. Sales taxes are collected by the seller at the time of sale, or shipped as taxes of use by buyers of taxable goods that do not pay sales tax.
The United States imposes tariffs or import duties on the import of various goods from many jurisdictions. This rate or charge must be paid before the goods can be imported legally. Tariffs vary from 0% to more than 20%, based on certain goods and countries of origin.
Property and prize taxes are imposed by the federal government and some state governments over the transfer of property rights, by will, or by lifetime donations. Similar to federal income taxes, federal taxes and gift taxes are levied on citizen and resident property worldwide and allow credit for foreign taxes.
Video Taxation in the United States
Level and type of taxation
The US has various federal, state, local, and special-purpose jurisdictions. Each of them imposes taxes to fully or partially fund its operations. These taxes may be levied on the same income, property or activity, often without compensating for any other taxes. The types of taxes imposed on each level of government vary, partly because of constitutional restrictions. Income taxes are levied at the federal and most state levels. Taxes on property are typically charged only locally, although there may be some local jurisdictions that impose a tax on the same property. Other excise taxes are imposed by the federal government and some states. Sales taxes are charged by most states and many local governments. Customs or customs tariffs are only charged by the federal government. A wide range of user fees or license fees is also charged.
The federal property tax will be required by the US Constitution to be distributed to America based on their population, since this type of tax is considered a direct tax. State and local government property taxes are property taxes on real estate.
Maps Taxation in the United States
Type of taxpayer
Taxes may be levied on individuals (individuals), business entities, estates, trustees, or other organizational forms. Taxes may be based on property, income, transactions, transfers, imports of goods, business activities, or various factors, and are generally imposed on the type of taxpayer for whom the tax base is relevant. Thus, property taxes tend to be imposed on property owners. In addition, certain taxes, especially income taxes, may apply to members of the organization for organizational activities. Accordingly, partners are taxed on their partnership earnings.
With few exceptions, one level of government does not impose taxes on another level of government or its instrumentalities.
Income tax
Income taxes are levied in federal, state and local levels in the United States. The tax system in each jurisdiction can determine taxable income separately. Many countries refer to some federal concepts to determine taxable income.
History of income tax
The first income tax in the United States was implemented under the Revenue Act of 1861 by Abraham Lincoln during the Civil War. In 1895, the Supreme Court ruled that US federal income tax on interest income, dividend income, and unconstitutional rental income in Pollock v. Farmers Loans & amp; Trust Co., because it is a direct tax. Pollock's decision was rejected by the ratification of the Sixteenth Amendment to the United States Constitution in 1913, and by a US Supreme Court ruling including Graves v. New York ex rail. O'Keefe, South Carolina v. Baker, and Brushaber v. Union Pacific Railroad Co... Basic concepts
The US income tax system implements income-based taxes on individuals, corporations, estates, and trusts. Tax is taxable income, as defined, times a certain tax rate. This tax may be deducted by credit, some of which may be refunded if it exceeds the calculated tax. Taxable income may differ from revenue for other purposes (such as for financial reporting). The definition of taxable income for federal purposes is used by many people, but far from all states. Earnings and deductions are recognized under tax rules, and there are variations in rules between states. Books and tax revenues may differ. Earnings are divided into "capital gain", which is taxed at a lower rate and only when the taxpayer chooses to "realize" them, and "regular income", which is taxed at a higher rate and annually. Because of this difference, capital is taxed much lighter than labor.
Under the US system, individuals, companies, estates, and trusts are subject to income taxes. Partnerships are not taxed; on the contrary, their partners are subject to income taxes on their income and deductions, and take their credit portion. Some types of business entities may choose to be treated as a company or as a partnership.
Taxpayers are required to apply for tax returns and self assessment taxes. Taxes may be withheld from income payments (eg, , withholding taxes from wages). As long as taxes are not covered by deductions, the taxpayer must make an estimate of the tax payment, generally every quarter. Tax returns are subject to review and adjustments by tax authorities, although much less than all reviewed returns.
Taxable income is gross income minus personal exemption, deduction and exemption. Gross revenue includes "all revenue from any source". Certain earnings, however, are subject to tax exemption at the federal or state level. This income is reduced by tax breaks including most businesses and some non-business expenses. Individuals are also allowed to withhold for personal exemptions, fixed dollar allowances. The allowances of some non-business deductions are gradually phased out at higher income levels.
The largest state and federal income tax system in the US weighs on the income of citizens and residents around the world. Federal federal tax credit is granted for foreign income taxes. Individuals living abroad may also claim the exclusion of foreign earned income. Individuals may become citizens or residents of the United States but not residents of a country. Many countries give the same credit for taxes paid to other countries. These credits are generally limited to the amount of tax on income from foreign sources (or other countries).
Archiving status
Federal and state income taxes are calculated, and returns are filed, for each taxpayer. Two married people can calculate the taxes and return the files together or separately. In addition, unmarried individuals who support certain children or other relatives may file a return as a head of the household. Group of parent company-subsidiaries may choose to apply for a combined return.
Graduation rate
The income tax rate differs at the federal and state levels for companies and individuals. Federal and many higher state income tax rates (graduated) at higher income levels. The rate of income at which various tax rates apply to individuals varies with the filing status. The rate of income at which each level starts is generally higher ( i.e , lower taxes) for married couples proposing a joint return or one person filing as head of the household.
Individuals are charged a tiered federal tax rate of 10% to 39.6%. Corporations are subject to federal graduation rates of 15% to 35%; a 34% rate applies for earnings of $ 335,000 to $ 15,000,000. State income tax rates vary from 1% to 16%, including local income tax if applicable. State and local taxes are generally deducted in calculating federal taxable income. State and state individual income tax rates vary by individual filing status.
Earnings
Taxable income is gross income minus any allowable adjustments and tax deductions. Gross income for federal and most states is revenue and profit from all sources minus cost of goods sold. Gross revenue includes "all revenue from any source", and is not limited to the money received. Earnings from illegal activities may be taxed and must be reported to the IRS.
The amount of income recognized generally is the value received or that must be accepted by the taxpayer. Certain types of income are specifically excluded from gross revenue. The time at which gross income becomes taxable is determined under the federal tax rules. This may differ in some cases from accounting rules.
Some types of income are exempt from gross revenue (and are therefore subject to tax exemption). Exceptions vary at federal and state level. For federal income taxes, interest income on state and local bonds is waived, while some countries waive interest income except from the city within the country. In addition, certain types of receipts, such as gifts and inheritance, and certain types of benefits, such as health insurance provided by the employer, are exempt from income.
Non-resident aliens are only taxed on earnings from US sources or from US businesses. The tax on non-resident foreigners on non-business income is 30% of gross income, but is subtracted under many tax treaties.
* These brackets are taxable income plus standard deduction for shared returns. The reduction is the first group. For example, a couple earning $ 88,600 in September owed $ 10,453; $ 1,865 for 10% revenue from $ 12,700 to $ 31,500, plus $ 8,588 for 15% of earnings from $ 31,500 to $ 88,600. Now, for every $ 100 they generate, $ 25 is taxed until they reach the next bracket.
After earning another $ 400; down to 89,000 lines of tax is $ 100 more. The next column is tax divided by 89,000. The new law is the next column. This tax is equivalent to 10% of their income from $ 24,000 to $ 43,050 plus 12% from $ 43,050 to $ 89,000. Single set of markers can be set quickly. Parentheses with taxes cut in half.
Itemizers can calculate taxes without moving the scale by taking the difference from above. The pair above, has a receipt of $ 22,700 in pieces, meaning that the last $ 10,000 of their income is tax-free. After seven years the papers can be destroyed; if not unmatched.
- Resources and Method
- This is a spreadsheet. To imitate; write the default deduction in cell B2 and name it ak_1. Write down and name the brackets of taxable income plus 12,700 each in this column. In cells D2 to D8, write and name the marginal interest (ar_1 to 7). Starting from cell B14, write earnings column. Copy this formula:
- = IF (B14 & gt; ak_7, (B14-ak_7) * ar_7,0) IF (B14 & gt; ak_6, (IF (B14 & gt; ak_7, ak_7, B14) (IF) (IF (B14 & gt; ak_5, IF (B14 & gt; ak_5, IF (B14 & gt; ak_5, IF (B14 & gt; ak_5, (b14 & gt; ak_4, ak_4, b14) -ak_3) * ar_3,0) IF (B14 & gt ; IF (B14 & gt; ak_2, ak_2, B14) -ak_1) * ar_1 , 0)
- In cell C14, paste the formula. Ctrl-C cell, and down arrow. Ctrl-V and down arrow fourteen times. Repeat this Ctrl-V function in cell C2.
Reductions and exceptions
The US system allows the reduction of taxable income for businesses and some non-business expenditures, called deductions. Businesses selling goods reduce direct gross revenues by cost of goods sold. In addition, businesses can reduce most types of expenses that occur in business. Some of these pieces are subject to limitations. For example, only 50% of the amount spent on any food or entertainment can be reduced. The amount and timing of deductions for business expenses is determined under the taxpayer's tax accounting method, which may be different from the method used in the accounting records.
Some types of business expenses can be deducted for several years rather than when they occur. This includes long-lived asset costs such as buildings and equipment. The cost of the asset is recoverable through deductions for depreciation or amortization.
In addition to business expenses, an individual may reduce earnings by allowance for personal exemptions and either fixed standard deductions or itemized deductions. One personal exemption is allowed per taxpayer, and additional deductions are allowed for any specific child or individual that is supported by the taxpayer. The number of standard deductions varies by taxpayer filing status. The deductions specified by the individual include home mortgage interest, property taxes, certain other taxes, contributions to recognized charities, medical expenses of more than 7.5% of adjusted gross income, and certain other amounts.
Personal exemptions, standard deductions, and deductions that are itemized are limited (incremental) above a certain level of income.
Business body
Corporations shall pay tax on their taxable income independently from their shareholders. The shareholders are also taxed on dividends received from the company. In contrast, partnerships are not subject to income taxes, but their partners calculate their taxes by including their shares of partnership goods. A corporation wholly owned by a citizen or US resident (S) may choose to be treated equally with a partnership. A limited liability company and certain other business entities may choose to be treated as a company or as a partnership. Countries generally follow the characterization. Many countries also allow companies to choose the status of corporate S. Charitable organizations are taxed on business income.
Certain transactions of a business entity are not taxed. This includes many types of formation or reorganization.
Credit
A variety of tax credits can reduce income tax at the federal and state levels. Some credits are only available to individuals, such as child tax credits for each dependent child, American Opportunity Tax Credit for tuition fees, or Income Tax Credits Provided for low-income wage earners. Some credits, such as Job Opportunity Tax Credit, are available for businesses, including special industry incentives. Some credits, such as foreign tax credits, are available to all types of taxpayers.
Payment or withholding tax
The federal and state income tax system is a self-assessment system. The taxpayer must declare and pay taxes without judgment by the tax authorities. Quarterly payments from the estimated tax due are required as long as taxes are not paid through deductions. Employers must withhold income tax, as well as Social Security and Medicare taxes, from wages. The amount to be deducted is calculated by the employer based on the employee's tax status representation on Form W-4, with limited government review.
Country variations
Forty-three states and many regions of the United States impose income taxes on individuals. Forty-seven states and many regions impose taxes on corporate earnings. Tax rates vary by state and locality, and can be fixed or refined. Most tariffs are the same for all types of income. State and local income taxes are charged in addition to federal income taxes. State income tax is allowed as a deduction in calculating federal income tax, which is subject to limitations for individuals.
State and local taxable income is determined under state law, and is often based on federal taxable income. Most countries conform to many federal concepts and definitions, including defining income and business deduction and timeliness. State rules vary widely with regard to individually itemized pieces. Most states do not allow state income tax deductions for individuals or companies, and impose taxes on certain types of exempt income at the federal level.
Some states have alternative measures of taxable income, or alternative taxes, especially for companies.
Countries that impose income taxes generally impose tax on all revenues of companies organized in the state and persons living in the state. Taxpayers from other countries are taxed only on income received in the state or shared with the state. Businesses are subject to income tax in circumstances only if they have a sufficiently deep nexus (connection to) country.
Non-residents
Non-residents and non-residents of the United States are subject to federal income taxes only on income from US businesses and certain types of income from US sources. State tax persons living outside countries and companies held outside the state only with wages or business income within the country. Payers of some income types for non-residents must withhold federal or state income tax on payments. The 30% federal deduction on such income may be deducted under the tax treaty. Such agreements do not apply to state taxes.
Alternate tax base (AMT, state)
The minimum alternative tax (AMT) is charged at the federal level on a slightly modified version of taxable income. Taxes apply to individuals and companies. The tax base is adjusted for gross income minus fixed deductions that vary by taxpayer filing status. Pieces of individual goods are limited to home mortgage interest, charitable donations, and a portion of the cost of treatment. AMT is charged at the rate of 26% or 28% for individuals and 20% for companies, less the amount of regular taxes. A credit to the future regular income tax is allowed for such excess, with certain restrictions.
Many countries apply minimum income taxes on companies or taxes that are calculated on an alternative tax basis. This includes taxes based on company capital and alternative income measures for individuals. Details vary by country.
The difference between books and taxable income for businesses
In the United States, taxable income is calculated on the basis that the rules differ materially from accounting principles generally accepted in the US. Since only public companies are required to prepare financial statements, many non-public companies choose to keep their financial records under the tax rules. Corporations presenting financial statements using other than tax rules should include a detailed reconciliation of their earnings to their taxable income as part of their tax return. The main areas of difference include depreciation and amortization, time of revenue recognition or subtraction, assumptions for cost of goods sold, and certain items (such as food and entertainment) of limited tax deductions.
Report under the self-rating system
Income taxes in the United States are self-assessed by taxpayers by filling in the requested taxes. Taxpayers, as well as certain non-taxpayer agencies, such as partnerships, must apply for federal and state-level annual tax returns. This return discloses the full calculation of taxable income under the tax principle. The Taxpayer calculates all income, deduction, and credit itself, and determines the amount of tax payable after applying prepayment and withholding tax. Federal and state tax authorities provide precast forms that must be used to file tax returns. The IRS 1040 form is required for individuals, Form 1120 series for companies, Form 1065 for partnerships, and Form 990 series for tax-exempt organizations.
State forms vary widely, and rarely correspond to federal forms. Tax returns vary from two pages (Form 1040EZ) used by nearly 70% of individual rapport to thousands of form pages and attachments for large entities. Group companies may choose to file consolidated returns at the federal level and with some states. Federal federal filings and many back states are widely encouraged and in some cases necessary, and many vendors offer computer software to be used by taxpayers and pay back preparations to prepare and restore files electronically.
Capital gains tax
Individuals and companies pay US federal income taxes on net totals of all their capital gains. The tax rate depends on the investor's tax bracket and the amount of investment time is held. Short-term capital gains are taxed at the investor's usual income tax rate and are defined as investments held for a year or less before sale. Long-term capital gains , on the disposition of assets held for more than one year, are taxed at a lower rate.
Payroll tax
In the United States, payroll taxes are assessed by the federal government, many states, the District of Columbia, and a number of cities. These taxes are levied on employers and employees and at various compensation bases. They are collected and paid to the tax jurisdiction by the employer. Most jurisdictions that enforce payroll taxes require reporting quarterly and annually in most cases, and electronic reporting is generally required for all except for small firms. Since payroll taxes are only imposed on wages and not on income from investments, taxes on labor income are much heavier than taxes on income from capital.
Income tax income
Federal, state and local tax cuts are required in jurisdictions that impose income taxes. Employers who have contact with jurisdiction must withhold tax from wages paid to their employees in the jurisdiction. The calculation of the amount of tax to withhold is made by the employer based on the representation by the employee regarding his tax status in IRS Form W-4. The withholding tax amount shall be payable to the taxation jurisdiction, and available as a refundable tax credit to the employee. Income tax withheld from non-final taxable salary, only advance payment. Employees must continue to file income tax returns and self-assess the tax, claiming the amount deducted as a payment.
Social Security and Medicare Tax
The federal social insurance tax is charged equally to employers and employees, comprising tax of 6.2% of wages up to the maximum annual wage ($ 118,500 in 2015) for Social Security plus a tax of 1.45% of total wages for Medicare. For 2011, employee contributions were reduced to 4.2%, while employers remained 6.2%. To the extent that the employee portion of the 6.2% tax exceeds the maximum on the grounds of some employer (each will collect up to the maximum annual wage), the employee is entitled to a refundable tax credit upon filing income tax refund for the year.
Unemployment tax
Employers are subject to unemployment taxes by the federal government and all states. Tax is the percentage of taxable pay with a hat. Tariffs and excise taxes vary according to jurisdiction and by industry and employer experience judgments. For 2009, the maximum tax per employee is generally under $ 1,000. Some states also impose unemployment, disability insurance, or similar taxes on employees.
Reporting and payment
Employers must report a payroll tax to the tax jurisdiction in accordance with the means provided by each jurisdiction. The quarterly report on aggregate income tax deductions and Social Security taxes is required in most jurisdictions. Employers must submit an aggregate unemployment tax report every three months and each year with each state in effect, and annually at the federal level.
Each employer is required to provide each employee an annual report on the IRS Form W-2 of paid wages and federal, state and local taxes withheld, with copies sent to the IRS and state tax authorities. It matures on January 31 and 28 February (March 31 if submitted electronically), respectively, following the calendar year in which wages are paid. Form W-2 is proof of tax payment for employees.
Employers are required to pay payroll taxes to tax jurisdictions under various rules, in most cases within 1 banking day. Federal and many state salary tax payments are required to be made by electronic funds transfer if a certain dollar threshold is met, or by deposits with banks for the benefit of taxation jurisdiction.
Penalty
Failure to pay federal taxes on time and match results in automatic penalty from 2% to 10%. Similar circumstances and local penalties apply. Failure to lodge a monthly or quarterly refund properly may result in additional penalties. Failure to file Form W-2 results in automatic penalty of up to $ 50 per form is not timely submitted. State and local punishments vary according to jurisdiction.
Extremely severe penalties apply if federal income tax cuts and Social Security taxes are not paid to the IRS. Penalties of up to 100% of unpaid amounts may be assessed against the employer entity as well as everyone (such as a company official) who has control or custody of the funds from which payment should be made.
Sales and excise tax
Sales and use tax
There are no federal sales or usage taxes in the United States. All but five countries impose sales and use taxes on retail sales, rent and lease of many items, as well as some services. Many cities, districts, transit authorities, and special-purpose districts impose additional local sales or usage taxes. Sales and use tax is calculated as the purchase price multiplied by the appropriate tax rate. Tax rates vary by jurisdiction from less than 1% to more than 10%. Sales taxes are collected by the seller at the time of sale. Tax use is self-assessed by buyers who have not paid sales tax on a taxable purchase.
Unlike value added taxes, sales tax is charged only once, at the retail level, on certain items. Almost all jurisdictions provide many categories of goods and services that are exempt from sales tax, or taxed at a reduced rate. Purchases of goods for further production or for resale are uniformly exempt from sales tax. Most jurisdictions relieve food sold in grocery stores, prescription drugs, and many agricultural supplies. Generally cash discounts, including coupons, are not included in the price used in calculating taxes.
Sales taxes, including taxes imposed by local governments, are generally provided at the state level. Countries that charge sales tax require retail sellers to sign up to the state, collect taxes from customers, return the files, and send taxes to the state. Procedural rules vary widely. Sellers usually have to levy taxes from buyers in the country unless the buyer provides a release certificate. Most countries allow or require electronic tax shipping to countries. The state is prohibited from leaving the seller of the state to collect tax unless the seller has some minimal connection with the state.
Excise tax
Excise tax may be imposed on the sale price of goods or per unit or other basis. Excise taxes may have to be paid by the manufacturer with wholesale sales, or can be collected from customers with retail sales. Excise taxes are imposed at federal and state levels of various goods, including alcohol, tobacco, tires, gasoline, diesel, coal, firearms, telephone service, air transport, unlisted bonds, and many other goods and services. Some jurisdictions require that tax stamps be attached to goods to indicate tax payments.
Property tax
Most state-level jurisdictions in the United States impose a tax on interests in real property (land, buildings, and permanent repairs). Some jurisdictions also impose taxes on certain types of business personal properties. The rules vary greatly according to jurisdiction. Many overlapping jurisdictions (district, city, school district) may have the authority to impose a tax on the same property. Some countries impose a tax on property values.
Property tax is based on the fair market value of the subject property. The tax amount is determined annually on the basis of the market value of each property on a certain date, and most jurisdictions require periodic reassessment of value. The tax is calculated as the market value determined times the valuation rate multiplied by the tax rate. The rate of valuation and tax rates vary greatly among jurisdictions, and may vary by type of property within jurisdictions. When a property is recently sold among unrelated sellers, the sale establishes a fair market value. In other cases ( i.e. , mostly), its value should be estimated. Common estimation techniques include comparable sales, depreciation costs, and revenue approaches. The property owner can also declare a value, which may be changed by the tax assessor.
Property type taxed
Property taxes are most often applied to real estate and business property. Real property generally includes all interests considered under state law for ownership interests in land, buildings, and repairs. Ownership interests include title ownership as well as certain other rights to property. The cost of car and boat registration is part of this tax. Typically, other non-business goods are not subject to property tax.
Assessment and collection
The assessment process varies by country, and sometimes within a country. Each tax jurisdiction determines the value of the property within the jurisdiction and then determines the amount of tax to be assessed based on the value of the property. The tax assessor for tax jurisdiction is generally responsible for determining the value of the property. The determination of the value and calculation of taxes is generally made by officials who are referred to as tax assessors. The property owner has the right in every jurisdiction to declare or contest the specified value. Property values ​​should generally be coordinated between jurisdictions, and such coordination is often done by equivalency councils.
Once the value is determined, the appraiser usually notifies the last known property owner of the value determination. Once the value is settled, the property tax bill or notice is sent to the property owner. Payment times and conditions vary widely. If the property owner fails to pay taxes, the tax jurisdiction has various solutions for collection, in many cases including confiscation and sale of property. Property tax is a lien on the property where the transfer is also charged. Mortgage companies often collect taxes from property owners and send them on behalf of their owners.
Customs duties
The United States imposes tariffs or import duties on imports of goods. Liabilities are collected at the time of import and are paid by importers of records. Customs vary by country of origin and product. Goods from many countries are exempt from obligations under various trade agreements. Certain types of goods are excluded from the assignment regardless of source. Customs rules are different from other import restrictions. Failure to comply with customs rules properly may result in the seizure of goods and criminal penalties against the parties involved. The United States Customs and Border Protection ("CBP") impose customs rules.
Import goods
Goods can be imported into the United States subject to import restrictions. Importers of goods may be taxed ("import duty" or "tariff") on the value of the imported goods. "The imported goods are not entered legally until after the delivery arrives at the port of entry, the delivery of goods has been authorized by CBP, and the estimated import duty has been paid." Import and declaration and payment of import duties shall be made by the importer of records, which may be the owner of licensed goods, buyers, or licensed customs brokers. Goods may be stored in a bonded warehouse or Foreign Trade Zone in the United States up to five years without payment of duty. Item must be declared to enter the US within 15 days of arrival or before leaving the bonded warehouse or foreign trade zone. Many importers participate in voluntary self-assessment programs with CBP. Custom rules apply to items imported by mail. All items imported to the United States must be inspected by CBP. Some items may be imported temporarily to the United States under a system similar to the ATA Carnet system. Examples include laptop computers used by people traveling in the US and samples used by sellers.
Origin
The tax rate on the transaction value varies by country of origin. Items must be individually labeled to indicate the country of origin, with the exception of certain types of goods. Goods are deemed to originate in the country with the highest import duty for certain goods unless the goods meet certain minimum content requirements. Extensive modifications to normal duties and classifications apply to goods originating in Canada or Mexico under the North American Free Trade Agreement.
Classification
All non-excluded items shall be subject to duties calculated under the Harmonization Tariff Schedule issued by CBP and the U.S. International Trade Commission. This long schedule provides the task fare for each class of goods. Most goods are classified by the nature of the goods, although some classifications are based on usage.
Task value
Customs tariffs can be expressed as a percentage of value or dollars and cents per unit. Rates based on values ​​vary from zero to 20% in the 2011 schedule. Rates may be based on the relevant units for certain types of goods (per ton, per kilogram, per square meter, etc.). Some tasks are partly based on value and partly on quantity.
If goods with different import duties are combined, all shipping may be taxed at the highest applicable tariff rates.
Procedures
Imported goods are generally accompanied by a bill of lading or air waybill that describes the goods. For the purposes of customs assessment, they must also be accompanied by an invoice documenting the value of the transaction. The items on the bill of lading and invoice are classified and the duties are calculated by the importer or CBP. The amount of this obligation must be paid immediately, and must be paid before the goods can be imported. Most of the valuation of goods is now done by importers and documentation submitted by CBP electronically.
After the assignment is paid, CBP approves the goods to be imported. They can then be removed from the port of entry, bonded warehouse, or Free Trade Zone.
After the duty is paid on certain goods, the importer may request the return of duty if the goods are exported without substantial modification. The process of claiming refunds is known as a weakness of the task.
Punishment
Certain civil penalties apply to failure to follow CBP rules and obligations to pay. The goods of the person subject to such punishment may be seized and sold by CBP. In addition, criminal penalties may apply for certain offenses. Criminal penalties may double the value of the goods plus twenty years in prison.
Foreign Trade Zone
Foreign Trade Zone is a physically safe area in the United States but legally outside the US customs territory. Such zones are generally close to the entrance. They may be inside the importer's warehouse. Such zones are limited in scope and operation under the approval of the Council of Foreign Trade. The goods in the Foreign Trade Zone are not considered imported to the United States until they leave the Zone. Foreign goods may be used to produce other goods within the zone for export without payment of import duty.
Property and reward taxes
Plantation and gift taxes in the United States are imposed by the federal government and some states. The real tax is the excise tax levied on the right to grant property at the time of death. It's imposed on the property, not the recipient. Some countries impose inheritance taxes on the recipient. The gift tax is levied on the donor of the property in which the property is transferred for less than adequate consideration. Additional generational displacements (GSTs) are imposed by the federal government and some top state governments transferring to grandchildren (or their offspring).
Federal gift taxes apply to donors, not recipients, and are calculated on the basis of a cumulative taxable gift, and deducted by the previously paid gift tax. The federal real tax is calculated on the basis of the amount of taxable and taxable gift, and less the previous gift tax paid. These taxes are calculated as taxable amount times multi-tax rate (up to 35% in 2011). Real and prize taxes are also reduced by "integrated credit" equivalent to exceptions ($ 5 million in 2011). Tariffs and exclusions vary, and the benefits of low interest rates and credits have been removed for several years.
Taxable gifts are certain prizes of US property by non-resident aliens, most prizes of any property by citizens or residents, more than the annual exemption ($ 13,000 for gifts made in 2011) per donor per inattentive. Taxable companies are certain US property of non-resident aliens, and most are owned by residents or residents. For foreigners, residence for tax purposes is primarily based on domicile, but US citizens are taxed regardless of their country of residence. US real estate and the most visible property in the US are subject to property and prize taxes, whether the donor or the donor are residents or non-residents, citizens or foreigners.
The taxable amount of the prize is a fair market value of the property that exceeds the consideration received on the date of the prize. The taxable amount of a real estate is a fair market value of all property rights deemed on the date of death (or the date of alternative assessment) ("gross real"), liability less than the deceased, administrative costs (including funeral expenses) and certain deductions others. State taxes can be deducted, with limitations, in calculating federal taxable land. The demand for charity reduces the taxable property.
The prize tax applies to all irrevocable interest transfers in tangible or intangible property. Property taxes apply to all property owned wholly or partly by a citizen or resident at the time of his death, insofar as they concern the interests of the property. Generally, all property types are subject to land tax. Whether a deceased person has sufficient interest in the property for property to be subject to a prize or property tax is determined under applicable state property laws. Certain interests in property ending in death (such as life insurance) are included in taxable property.
Taxable plantation and gift values ​​are fair market value. For some assets, such as widely traded shares and bonds, the value can be determined based on the market listing. Other property values ​​may be determined by an assessment, subject to a potential contest by the tax authorities. Appraisal of specific uses applies to farms and businesses held tightly, depending on the limited number of dollars and other conditions. Monetary assets, such as cash, mortgages, and notes, are valued at face value, unless other values ​​are clearly established.
The result of life insurance is included in real estate. The value of the right of the beneficiary to receive an annuity is included in real estate. Certain transfers over a lifetime may be included in real estate. The particular strength of the deceased person to control the disposition of property by others is included in real estate.
Taxable land of a married person is reduced by deductions for all property given to the spouse of the deceased. Certain discontinued interests are also included. Other provisions may apply.
Gift givers that exceed the annual exemption must file a prize tax refund on the IRS Form 709 and pay taxes. Planters with a gross value of more than integrated credit must file a property tax refund on the IRS 706 Form and pay taxes from the estate. Returns are required if gifts or gross property exceed exceptions. Each state has its own filing form and requirements. Tax authorities may check and adjust prizes and property tax returns.
Job license and tax
Many jurisdictions in the United States charge taxes or fees for privileges to run a particular business or retain certain professional certifications. These licensing or employment taxes may be fixed annual amounts of dollars for licensees, amounts based on the number of practitioners in the company, the percentage of income, or some other basis. Persons who provide professional or personal services are often charged as such. Common examples include accountants, lawyers, barbers, casinos, dentists, doctors, auto mechanics, plumbers, and stockbrokers. In addition to taxes, other requirements may apply for the license.
All 50 countries charge a vehicle license fee. Generally, the fee is based on the type and size of the vehicle and is charged annually or twice a year. All states and the District of Columbia also charge a fee for driver's licenses, which generally have to be renewed with a fee payment every few years.
User fees
Fees are often charged by the government for the use of certain facilities or services. Such fees are generally charged at the time of use. A dual use permit may be available. For example, fees apply for national or state park use, to request and obtain certain decisions from the US Internal Revenue Service (IRS), for the use of certain highways (called "tolls" or toll roads), for parking on public streets , and for the use of public transport.
Tax administration
Taxes in the United States are administered by hundreds of tax authorities. At the federal level there are three tax administrations. Most domestic federal taxes are administered by the Internal Revenue Service, which is part of the Ministry of Finance. Alcohol, tobacco, and firearm taxes are administered by the Tax and Trade Bureau of Alcohol and Tobacco (TTB). Tax on imports (import duties) is governed by the US Customs and Border Protection (CBP). TTB is also part of the Department of Homeland Security and CBP.
State and local tax administration organizations vary widely. Each state has a tax administration. Some countries manage some local taxes in whole or in part. Most regions also maintain tax administration or share with neighboring areas.
Federal
Internal Revenue Service
The Internal Revenue Service manages all U.S. federal tax laws on domestic activities, except for taxes levied by the TTB. IRS functions include:
- Processing federal tax returns (except TTB refunds), including those for Social Security and other federal salary taxes
- Providing assistance to taxpayers in completing tax returns
- Collect all taxes related to the return
- Tax law enforcement through return and penalty checks
- Provide appeal mechanism for federal tax disputes
- Referring things to the Department of Justice for prosecution
- Publish information about U.S. federal taxes, including forms, publications, and other materials
- Provide written guidance in the form of decisions binding the IRS to the public and to certain taxpayers
IRS maintains several Service Centers where tax returns are processed. Taxpayers generally apply most types of tax returns by mail with this Service Center, or files electronically. The IRS also has a National Office in Washington, DC, and many local offices provide taxpayer services and tax audit administration.
Checkout
Tax returns filed with the IRS are subject to checks and adjustments, commonly called IRS audits. Only a small fraction of the return (about 1% of individual results in IRS FY 2008) is checked annually. Re-election uses various methods based on IRS experience. On examination, the IRS may request additional information from taxpayers by mail, directly at the local IRS office, or at the taxpayer's business location. The taxpayer is entitled to representation by a lawyer, Certified Public Accountant (CPA), or registered agent, at the expense of the taxpayer, who may make representations to the IRS on behalf of the taxpayer.
Taxpayers have certain rights in an audit. Upon the audit conclusion, the IRS may accept tax returns as proposed or propose adjustments for returns. The IRS can also assess penalties and interest. Generally, the adjustment must be submitted within three years from the due date of the tax return. Certain circumstances extend this deadline, including underestimation of revenue and fraud substantially. The taxpayer and IRS may agree to allow the IRS additional time to conclude the audit. If the IRS proposes an adjustment, the taxpayer may approve the adjustment, appeal within the IRS, or seek a tax assessment by the court.
Published and private decisions
In addition to enforcing tax laws, the IRS provides formal and informal guidance to taxpayers. Although often referred to as IRS Regulations, the rules under the Internal Revenue Code are issued by the Ministry of Finance. The IRS Guide consists of:
- Revenue, Revenue Procedures, and various IRS statements apply to all taxpayers and published in the Internal Revenue Newsletter, which binds the IRS,
- The decision of a private letter on a particular matter applies only to the taxpayer applying for the verdict,
- IRS publications that provide informal public instructions on tax matters,
- IRS forms and instructions,
- Comprehensive website, and
- Informal (non-binding) advice by phone.
Tax and Commerce Bureau of Alcohol and Tobacco
The Bureau of Alcohol and Tobacco Taxes (TTB), a division of the Treasury Department, enacted federal tax laws relating to alcohol, tobacco and firearms. TTB has six divisions, each with a discrete function:
- Revenue Center: processes tax returns and issue permissions, and related activities
- Risk Management: internally develop guidelines and monitor programs
- Tax Check: verify archiving and tax payments
- Trade Investigation: investigating the arm for non-tobacco items
- Tobacco Action Division: tobacco enforcement action
- Advertising, Labeling, and Formulation Division: apply various labeling and monitoring materials
Criminal enforcement associated with TTB is done by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, a division of the Department of Justice.
Customs and Border Protection
US. Customs and Border Protection (CBP), an agency of the United States Department of Homeland Security, collects import duties and regulates international trade. It has a workforce of more than 58,000 employees covering over 300 authorized entry ports to the United States. CBP has the authority to seize and dispose of cargo in case of violation of certain customs rules.
Country administration
Every state in the United States has its own tax administration, subject to the laws and regulations of that country. This is called in most states as the Department of Revenue or the Tax Department. The power of the state tax authority varies greatly. Most enforce all state-level taxes but not most local taxes. However, many states have integrated state sales tax administrations, including local sales tax.
The state tax refund is filed separately with the tax administration, not with the federal tax administration. Each country has its own rules of procedure, which vary greatly.
Local administration
Most areas of the United States manage most of their own taxes. In many cases, there are some local tax jurisdictions with respect to certain taxpayers or properties. For property taxes, taxation jurisdictions are usually represented by tax assessors/collectors whose offices are located within the facility of taxation jurisdiction.
Legal basis
The United States Constitution states that the Congress "will have the power to lay down and collect Taxes, Duties, Redemptions, and Excise... but all Tasks, Deception and Excise must be uniform throughout the United States." Prior to the amendment, it provided that "No Capitation, or any other direct, Taxes shall be Laid except in proportion to the Census..." The 16th amendment provided that "the Congress shall have the power to lay down and collect taxes on income, from whatever source originated, without division among some States, and without regard to any census or enumeration. "The 10th amendment states that" the power not delegated to the United States by this Constitution, or prohibited to America, is reserved to America, or to the people. "
Congress has enacted many laws dealing with taxes since the adoption of the Constitution. The law is now codified as Title 19, Customs, Title 26, Internal Revenue Code, and various other provisions. This law specifically authorizes the Minister of Finance of the United States to delegate various authorities related to user charges, assessments and tax collection.
The state constitution uniformly gives the state government the right to collect and collect taxes. Limitations under the state constitution vary widely.
Various individuals and groups question the legitimacy of the federal income tax of the United States. These arguments vary, but are rejected uniformly by the Internal Revenue Service and by the courts and decide to act recklessly.
Policy issues
Commentator Benjamin Page, Larry Bartels and Jason Seawright argue that Federal tax policies in relation to rules and reforms in the United States tend to benefit wealthy Americans. They assert that political influence is a legal right that rich people can do by donating funds to lobby for their policy preferences.
Every major type of tax in the United States has been used by some jurisdictions at some time as a tool of social policy. Both liberals and conservatives have called for more progressive taxation in the US Page, Bartels and Seawright reiterate that although members of the government support the move toward progressive taxes, because the budget deficits of upper-class citizens are not yet willing to push for change.. Tax cuts were granted during the Bush administration, and extended in 2010, making federal income tax less progressive.
Tax evasion
The Internal Revenue Service estimates that in 2001, the tax difference was $ 345 billion. Tax loophole is the difference between the amount of taxes levied legally and the amount actually collected by the government. The tax loophole in 2006 is estimated at $ 450 billion. The tax loophole two years later in 2008 is estimated to be in the range of $ 450- $ 500 billion and unreported revenues are estimated at about $ 2 trillion. Therefore, 18-19 percent of total reported earnings are not reported correctly to the IRS.
History
Prior to 1776, the American Colonies were taxed by the United Kingdom, and also taxed locally. Property taxes were enforced in the Colony as early as 1634. In 1673, the British Parliament imposed a tax on exports from the American Colonies, and thereby created the first tax administration in place to be the United States. Tariffs and other taxes are imposed by Parliament. Most colonies and many areas adopt property taxes.
Under Article VIII of the Confederate Budget, the United States government has no power to impose taxes. All such power is in the hands of the states. The Constitution of the United States, adopted in 1787, authorizes the federal government to establish and levy taxes, but requires that certain types of tax revenue be given to states in the proportion of the population. Tariffs are the main federal taxes through the 1800s.
In 1796, state and local governments in fourteen of the 15 countries were subject to land taxes. Delaware taxes income from property. The War of 1812 required a federal sales tax on certain luxury items because of the cost. However, internal taxes imposed in 1817 supported import tariffs that went into federal government. In the American Civil War, the principle of uniform property taxation has grown, and many countries rely on property taxes as the main source of income. However, the growing importance of intangible property, such as company stocks, caused the states to shift to other forms of taxation in the 1900s.
Income tax in the form of tax "faculty" is imposed by the colony. This combined income and property tax characteristics, and income elements persisted after 1776 in several states. Several countries adopted an income tax in 1837. Wisconsin adopted corporate and personal income taxes in 1911,
Source of the article : Wikipedia
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