TAXES

TAXES
A TAX IS A MANDATORY FINANCIAL CHARGE OR SOME
OTHER TYPE OF LEVY IMPOSED UPON A TAXPAYER BY A
GOVERNMENT ORGANIZATION IN ORDER TO FUND VARIOUS
PUBLIC EXPENDITURES. A FAILURE TO PAY, ALONG WITH
EVASION OF OR RESISTANCE TO TAXATION IS PUNISHABLE BY
LAW.
• TO HELP FUND PUBLIC WORKS AND
SERVICES
• TO BUILD AND MAINTAIN THE
INFASTRUCTURES USED IN A
COUNTRY
 THERE ARE SEVERAL VERY COMMON TYPES OF TAXES

• INCOME TAX – A PERCENTAGE OF INDIVIDUAL EARNINGS FILED TO

THE FEDERAL GOVERNMENT
• CORPORATE TAX- A PERCENTAGE OF CORPORATE PROFITS TAKEN
AS TAX BY THE GOVERNMERNT TO FUND FEDERAL PROGRAMS
• SALES TAX- TAXES LEVIED ON CERTAIN GOODS AND SERVICES
• PROPERTY TAX- BASE ON THE VALUE OF LAND AND PROPERTY
ASSETS
• TARIFF- TAXES ON IMPORTED GOODS IMPOSED IN THE AIM OF
STRENGHTHENING INTERNAL BUSINESS
TAXES ARE ALSO USUALLY SPLIT INTO
3 GROUPS
• FLAT TAXES- EVERYBODY PAYS THE SAME PERCENTAGE.
RUSSIA HAS FLAT INCOME TAX AND EVERYBODY IN RUSSIA
HAS TO PAY 13% OF THE INCOME
• PROGRESSIVE TAXES- THE MORE MONEY A PERSON
MAKES, THE HIGHER PERCENTAGE OF THEIR INCOME THEY
HAVE TO PAY. MOST COUNTRIES HAVE PROGRESSIVE
INCOME TAXES
• REGRESSIVE TAXES- THE LESS MONEY A PERSON
MAKES, THE HIGHER PERCENTAGE OF THEIR INCOME THEY
HAVE TO PAY SALES TAXES ARE USUALLY CALLED
REGRESSIVE AS POOR PEOPLE SPEND A HIGHER
PERCENTAGE OF THEIR MONEY, THAN RICH PEOPLE