Everybody pays taxes. In fact, even the homeless men you see on the streets might be paying taxes too.
Are you wondering how it is possible?
We pay different types of taxes every day, week, month or year. For most people who are not really well-informed about taxation and just rely on the help of trustworthy providers of Accounting and Tax Services in Georgia like Jeffrey Fleurinor, CPA, taxes are merely the fees deducted from our income every payday.
But that is not the case in reality. The government earns revenues through these different types of taxes. You might be surprised to know that you have been paying taxes all your life, and maybe, you started paying taxes since you were even a child.
- Income Tax
The citizens earn income because the government gives them the opportunity to do so. This is one of the federal government’s backings why our employers are allowed to deduct a certain amount from our income to pay our taxes.
Moreover, some states and local governments impose their own income taxes so tax rate may be different in varying localities.
- Estate Tax or Gift tax
The chance of owning parcels of real properties is not only a right but also a privilege given by the state to its inhabitants. Hence, if we are to transfer such right to another person by virtue of succession or donation, it is necessary to pay estate or gift taxes.
Because of the complexities of this particular tax, it is always recommended for a person who owns an estate valued at millions to consult experts like accountants and lawyers to help them settle these properties upon their death.
- Sales Tax
In majority of states, every purchase of any item is subjected to tax and this is what we refer to as ‘sales tax.’ Sales tax in different states varies- those without or with minimal state income have higher sales tax rates.
Also, establishments are tasked to collect this type of tax and to remit them to state authorities.
- Property Tax
Tax on property may differ from one state to another for states which do not have state income collects higher property taxes from their citizens. But the state where our properties are located is not the sole factor which determines the amount we should pay for them because its assessed value is also considered.
- Sin Tax
Among the methods used by the government to discourage consumption on specific items is the sin tax. Some items people commonly buy to feed our vices, like cigarettes and alcohols, are taxed higher by the State.
It is our responsibility to pay our taxes, but along with this responsibility should be our duty to be informed. Know your taxes and know why you should pay them.