Types Of Taxes
Types of Taxes Every April we have to go through filing federal income taxes, on our own or with the help of a tax accountant. Unless we happen to be tax policy wonks we don’t dwell too much on the theory and practice of taxation. While America’s tax code may be notoriously complicated, the taxes break down into discrete categories that are easy to understand. Below is our guide to the different types of taxes in the U.S. And if you’re looking for an expert who can help guide you through the intricacies of taxes, check out SmartAsset’s financial advisor matching tool to get paired up with a professional who meets your needs. Consumption Tax A consumption tax is a tax on the money people spend, not the money people earn. Sales taxes, which state and local governments use to raise revenue, are a type of consumption tax. An excise tax on a specific good, such as alcohol or gasoline, is also an example of a consumption tax. Some economists and presidential candidates have proposed a f...