October 04 2011

Kind of Tax

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- Payroll tax :  tax on the wages that a firm pays its workers.

- Social insurance tax :  basically the same as payroll tax, payroll tax is sometimes called the social insurance taxbecause the revenue frome the taxes is earmarked to pay for social security and medicare.

- Excise tax :  taxes on specifics goods, such as gasoline, cigarettes, and alcoholic beverages.

- Property tax :  levied as a percentage of the estimated value of land and structures and are paid by property owner.

- Sales tax  :  levied as a percentage of the total amount spent at retail store.

- Consumption tax : tax on the amount of money that people spend.

- Lump-sum tax : a tax that is the same amount for every one.

- Proportional tax : a tax for which high-income and low-income taxpayers pay the same fraction of income.

- Regressive tax :  a tax for which high-income taxpayers pay a smaller fraction of their incomethan do low-income taxpayers.

- Progressive tax : a tax for which high-income taxpayers pay a larger fraction of their income than do low-income taxpayers.

- Individual income tax : tax on the income of individual, and differs for individual.