Financial ABC: Taxes in the USA

Taxes in the United States play a crucial role in the organization of the economic system, and, of course, there is no way to avoid paying taxes. One of the well-known sayings about taxes here is that they cannot be avoided, as well as death. Every citizen of the country is obliged to give to the state part of the money earned.

The bottom line is that every taxpayer submits a declaration and pays taxes on time. No state body is engaged in calculating the tax deduction for the population.

The Internal Revenue Service carries out full control over the collection of taxes. The system is designed in such a way that people do not have the desire to hide from taxes in the hope of exercising partial control. The fact is that the IRS checks no more than 3% of the total number of declarations. This means that the probability of checking exactly the declaration that was filed with income concealment is extremely small. However, if it is found out, the punishment will be very severe.

Types of taxes in the USA

• Federal Income Tax. It is paid by employees of companies and corporations. The deduction of tax occurs automatically from the salary. The tax sum depends on the amount of wages and marital status.
• State and city taxes. You must also pay taxes at the place of residence. The amount of payments varies depending on the state, and it is 3-10% of your income.
• Property tax. If you own a house or land, you must also pay a property tax. Each state sets its size. It is about 1.5-2% of the average cost of your property.
• Sales tax. State revenues from trade are the main source of taxation. There are only a few states that do not have this fee. These are Alaska, Oregon, and Delaware. The amount of the tax is calculated individually. On average, it is 3-7%. 

Taxation has its strict system, which includes various laws, rules, and regulations. Thanks to it, a high standard for living of the population in the United States is ensured. The tax period in the United States lasts over a calendar year, that is, from January 1, 2022, to December 31, 2022. In 2022, Americans will pay about $5 trillion in tax fees to the treasury. In total, people pay almost a hundred different taxes throughout the year.

In the US, everything is taxed. Here is just a small list of what is taxed in the United States:

• Air travel and air transportation
• Registration and liquidation of enterprises
• Construction
• Tobacco products
• Recycling
• Registration of pets
• Legal costs
• Driver’s license
• Products and services
• Medical insurance
• Ecological fee

This is not a complete list of tax deductions and fees that Americans pay. This is just an average list of those positions that are present in the declarations of almost all US citizens.