4,706
edits
→Tax Laws
| Line 58: | Line 58: | ||
== Tax Laws == | == Tax Laws == | ||
Delaware levied a tax on several classes of income in 1869, then abolished it in 1871. | Delaware levied a tax on several classes of income in 1869, then abolished it in 1871. | ||
Nearly all states collect an annual tax on personal income, based on one's salary and other forms of "taxable income." The vast majority of states have what is known as a progressive tax code, which is essentially a sliding scale based on income, which requires those over a certain threshold to pay the highest rate. Some states have a flat tax that applies to all taxpayers regardless of income. Income taxes are used for a number of state goods and services available to residents, such as public education, police protection, and assistance for low-income individuals. Not all states collect income tax, but typically make up for it in other ways. | Nearly all states collect an annual tax on personal income, based on one's salary and other forms of "taxable income." The vast majority of states have what is known as a progressive tax code, which is essentially a sliding scale based on income, which requires those over a certain threshold to pay the highest rate. Some states have a flat tax that applies to all taxpayers regardless of income. Income taxes are used for a number of state goods and services available to residents, such as public education, police protection, and assistance for low-income individuals. Not all states collect income tax, but typically make up for it in other ways. | ||
There are two types of taxes: federal and state. U.S. citizens need to be sure that they comply with both sets of tax laws.[1] | |||
== References == | == References == | ||