taxes

By: Brennen Carr

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sales tax

-Sales taxes are imposed by state and local governments on the sale of goods and services. Depending on where your business is located, different goods and services may or may not be taxed. Some cities may not impose sales taxes on grocery items, for example. In general, whether the customer realizes it or not, most businesses must pay sales taxes on their gross receipts.

excise tax

Excise tax refers to an indirect type of taxation imposed on the manufacture, sale or use of certain types of goods and products.

hidden tax

Taxes that are indirectly assessed upon consumer goods without the consumer's knowledge. Hidden taxes are levied upon the goods at some point during the production process and therefore raise the cost of the goods sold. However, this tax is never revealed directly to the consumer, who simply pays a higher price for the good, not knowing that part of that price is due to this tax.

income tax

tax levied by a government directly on income, especially an annual tax on personal income.
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social security and medicare tax

-The tax levied on both employers and employees used to fund the Social Security program. Social Security tax is usually collected in the form of payroll tax or self-employment tax. The Social Security tax pays for the retirement and disability benefits received by millions of Americans each year.


-Tax deducted from the wages of every legally working American that is used to pay for the Medicare program provided to individuals over the age of 65. This is typically another line item included on an employee's paystub. At the end of year, the employer will provide the employee with a W-2 and this will include the total amount deducted from the individual's paycheck for the Medicare tax. The tax was implemented under the Federal Insurance Contributions Act.

property tax

Collected by county, city and state governments, as well as school districts, these taxes cover the cost of community services such as police salaries, park maintenance and school construction.

estate tax

a tax levied on the net value of the estate of a deceased person before distribution to the heirs.

tariff

a tax or duty to be paid on a particular class of imports or exports.
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