TAX STRUCTURE OF UNITED STATES OF AMERICA
USA constitutes of 3 hierarchical structure for tax purposes.
LocalAt Federal level following taxes are imposed
Capital Gains Tax
Payroll tax.At the state and local level following taxes are imposed
on the basis of Constitutional limitations Income tax is imposed by bothfederal and state level governments. The charge is on income from whatever source it maybe. Other concepts of exemption, deduction, assessment are similar to that of India. Oneunique feature of assessment in USA is the concept of family assessment.
the payroll taxes are levied on the employees but paid by the employer. Thefollowing taxes come within the ambit of payroll taxes.-
Social security taxes
Estate & Gift Tax
Estate taxes are levied on the transfer of estate at the time of the death of the person. To fill in the gap where a person may transfer his property while he is living GiftTax is there. Gift Tax is imposed when a person transfers his property without considerationwhen he is alive.
Excise Tax is levied on diesel fuel, gasoline, cigarettes, wine and liquor. Thereis a tariff list similar to India, for computation of excise tax.
Corporation Tax is levied only on those entities which come under thedefinition of corporation. This definition includes foreign corporations also. The un-