A consumption tax is a tax on the purchase of a good or service. Consumption taxes can take the form of sales taxes, tariffs, excise, and other taxes on consumed goods and services. Consumption tax can also refer to a taxing system as a whole in which people are taxed based on how much they consume rather than how much they add to the economy (income tax).
What's New - Estate and Gift Tax Stay up to date with the tax law changes related to estate and gift taxes. Deceased Taxpayers - Probate, Filing Estate and Individual Returns, Paying Taxes Due Information to help you resolve the final tax issues of a deceased taxpayer and their estate.
Hotel-occupancy taxes have long been around, but they’re on the rise. Less than a year ago Connecticut raised its tax from 12 percent to 15 percent. Villages across Westchester County, north of New York City, are now allowed to tack a 3 percent bed tax on top of the existing 10.38 percent hotel tax.
By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
Payroll Tax Transparency. Besides the fact that the federal government’s imposition of “employer-side” payroll taxes is misleading, it also leads to a possible problem: it masks the costs of the programs that payroll taxes pay for. That is, rather than directly listing the ordinary taxpayers’ share of payments for Social Security and Medicare, half of the taxes that fund the programs are hidden from workers, in the form of lower wages.
Sin Taxes are Excise Taxes. What is an excise tax, you ask? The definition of an excise tax is a tax levied on certain specific goods or activities. Whereas a sales tax is a blanket consumption tax on all goods (often with the exception of groceries), excise taxes single out certain goods for an extra tax hit.
Based on the summary of federal tax income data in 2009, with a tax rate of 35%, the highest earning 1% of people paid 36.7% of the United States' income tax revenue. In 2012, President Obama announced plans to raise the two top tax rates from 35% to 39.6% and from 33% to 36%.