Tax Structure
Summary
Tax Structure
Taxation is the act of imposing some levies to individuals and entities by the Government. There are, however different types of taxation. The taxpayer should, therefore, be made aware of the tax that he should be paid. The tax is paid to the tax collector which is then budgeted for. The taxpayer should also know the amount in which he/she is supposed to pay.
The tax structure which is also an aspect of tax has two components which include the tax base and tax rates and tax base. The task base is the amount in which the tax is applied. For a country to be able to serve its people there must be adequate revenue which is either borrowed or levied on the people. In taxation, there are progressive and proportional aspects.
Both taxation criteria should be simple to be understood. It should also be neutral in terms of business so that there is no favoritism or partiality in matters the law. In the United States where there is a well-developed economy, there are different types of taxes which include income tax, property taxes, death tax. One of the widest and the leading tax in the United States is that of income tax since it involves both individuals and the institutions.
Conclusively the federal government of the United States uses taxation as one of the leading avenues to obtain the revenue necessary in running the state. This paper has therefore made insight into various aspects of taxation, a role which is entirely undertaken by the Federal government. The understanding of the structure of the structure of the tax entirely helps to create an understanding of how the government has structured the tax system and how it has placed its infrastructure to collect the tax effectively.
