The best governance system on earth is democracy. Most Western countries are democracies. That is why they are very successful. America is a constitutional democracy that is governed by the rule of law. Every American citizen has rights and responsibilities. For American democracy to work there has to be taxation revenue. It is because of taxation that it is possible to finance American elections and pay legislators at the end of each month. A huge chunk of this revenue also pays civil servants. There are a number of Stockton CA taxes. Most of them target individuals.
Being an American citizen comes with very many privileges. The typical American enjoys a level of security that is not common in other parts of the world. One has very many freedoms while in other countries there are restrictions. The price of enjoying all these privileges is paying income taxation. Every employed person in America needs to pay this taxation every month.
There are two classes of taxation. The first class is direct taxation. The other class is indirect taxation. Income tax is direct taxation because it is directly paid by an individual. People who earn very low incomes are usually exempt from this kind of taxation. One has to submit his personal income taxation returns every year. Failure to do so attracts penalties.
Individuals also have to pay sales taxation. This is levied on goods and service. This kind of taxation is not considered as direct taxation. As a matter of fact, it is indirect taxation. It is paid by the manufacturer. Subsequently, the manufacturer passes it to the retailer who ends up passing it to the consumer. There is also withholding taxation.
Withholding taxation is also paid by individuals. It is paid on the dividends that are received from stocks. When one buys a piece of property or a car, there will be a stamp duty to be paid. The property owner will also need to furnish property taxation on an annual basis. This taxation is based on the value of a piece of property.
It is not only individuals who are eligible to taxation. Even a business has to pay taxation on the profit that has been indicated on the profit and loss account. A business will need to subtract expenses from incomes to determine the profit that is eligible to taxation. There is more than one type of business. Company is one of them.
One does not have to bear the full burden of taxation. The government has created a number of mechanisms through which the taxation burden can be reduced. One of such mechanisms is taxation avoidance. The government will not punish a business for avoiding any type of taxation. However, taxation evasion is bad. Actually, it is punishable with penalties.
Taxation is not a new thing. It has been around for quite some time. According to the historians of leading universities in America and other countries, taxation was most likely started by the Romans. It was also the Romans who started the system of democracy. Presently, almost all countries on earth including US and all countries in Europe have a taxation system.
Being an American citizen comes with very many privileges. The typical American enjoys a level of security that is not common in other parts of the world. One has very many freedoms while in other countries there are restrictions. The price of enjoying all these privileges is paying income taxation. Every employed person in America needs to pay this taxation every month.
There are two classes of taxation. The first class is direct taxation. The other class is indirect taxation. Income tax is direct taxation because it is directly paid by an individual. People who earn very low incomes are usually exempt from this kind of taxation. One has to submit his personal income taxation returns every year. Failure to do so attracts penalties.
Individuals also have to pay sales taxation. This is levied on goods and service. This kind of taxation is not considered as direct taxation. As a matter of fact, it is indirect taxation. It is paid by the manufacturer. Subsequently, the manufacturer passes it to the retailer who ends up passing it to the consumer. There is also withholding taxation.
Withholding taxation is also paid by individuals. It is paid on the dividends that are received from stocks. When one buys a piece of property or a car, there will be a stamp duty to be paid. The property owner will also need to furnish property taxation on an annual basis. This taxation is based on the value of a piece of property.
It is not only individuals who are eligible to taxation. Even a business has to pay taxation on the profit that has been indicated on the profit and loss account. A business will need to subtract expenses from incomes to determine the profit that is eligible to taxation. There is more than one type of business. Company is one of them.
One does not have to bear the full burden of taxation. The government has created a number of mechanisms through which the taxation burden can be reduced. One of such mechanisms is taxation avoidance. The government will not punish a business for avoiding any type of taxation. However, taxation evasion is bad. Actually, it is punishable with penalties.
Taxation is not a new thing. It has been around for quite some time. According to the historians of leading universities in America and other countries, taxation was most likely started by the Romans. It was also the Romans who started the system of democracy. Presently, almost all countries on earth including US and all countries in Europe have a taxation system.
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