Taxes are of two distinct types, direct and indirect taxes. The difference comes in the way these taxes are implemented. Some are paid directly by you, such as the dreaded income tax, wealth tax, corporate tax etc. while others are indirect taxes, such as the value added tax, service tax, sales tax, etc. read more
Business may be required to remit the following types of taxes: Federal Income Tax: A tax levied by a national government on annual income. State and/or Local Income Tax: A tax levied by a state or local government on annual income. Not all states have implemented state level income taxes. read more
Proportional Tax. A proportional tax is the same as a flat tax. Taxpayers at all income levels would pay the same “proportion” in taxes. As explained above, proportional taxes are regressive taxes. These types of taxes are common in state-level sales taxes but not common at the federal level. read more
In United States tax law, there is a distinction between an estate tax and an inheritance tax: the former taxes the personal representatives of the deceased, while the latter taxes the beneficiaries of the estate. read more