TAX SYSTEM OF USATAX SYSTEM OF USATAX SYSTEM OF USATAX SYSTEM OF USAMade byMade by: : AKRAMOVA DILNOZA AKRAMOVA DILNOZA

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• The United States of America is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, payroll, property, sales, imports, estates and gifts, as well as various fees. In 2010 taxes collected by federal, state and municipal governments amounted to 24.8% of GDP.

CATEGORY OF TAXES• Payroll taxes are imposed by the

federal and all state governments. These include Social Security and Medicare taxes imposed on both employers and employees, at a combined rate of 15.3% (13.3% for 2011 and 2012). However, benefits are only accrued on the first $106,800 of wages. Employers must withhold income taxes on wages.

Property taxes• are imposed by most local

governments and many special purpose authorities based on the fair market value of property. School and other authorities are often separately governed, and impose separate taxes.

Sales taxes• are imposed by most states and some

localities on the price at retail sale of many goods and some services. Sales tax rates vary widely among jurisdictions, from 0% to 16%, and may vary within a jurisdiction based on the particular goods or services taxed. Sales tax is collected by the seller at the time of sale, or remitted as use tax by buyers of taxable items who did not pay sales tax.

• Types of taxpayers• Taxes may be imposed on individuals

(natural persons), business entities, estates, trusts, or other forms of organization. Taxes may be based on property, income, transactions, transfers, importations of goods, business activities, or a variety of factors, and are generally imposed on the type of taxpayer for whom such tax base is relevant

Income tax

• estimate of the total effective tax rate for federal, state and local taxes (personal and corporate income, payroll, property, sales, excise, estate, etc.) The tax systems within each jurisdiction may define taxable income separately. Many states refer to some extent to federal concepts for determining taxable income.

• Payroll taxes• In the United States, payroll taxes are

assessed by the federal government, all fifty states, the District of Columbia, and numerous cities. These taxes are imposed on employers and employees and on various compensation bases. They are collected and paid to the taxing jurisdiction by the employers.

• Social Security and Medicare taxes• Main article: Federal Insurance Contributions Act tax• Federal social insurance taxes are imposed equally on

employers and employees, consisting of a tax of 6.2% of wages up to an annual wage maximum ($106,800 in 2010) for Social Security plus a tax of 1.45% of total wages for Medicare.For 2011, the employee's contribution was reduced to 4.2%, while the employer's portion remained at 6.2%.

• Property taxes• Most jurisdictions below the state level in the

United States impose a tax on interests in real property (land, buildings, and permanent improvements). Some jurisdictions also tax some types of business personal property.Rules vary widely by jurisdiction. Many overlapping jurisdictions (counties, cities, school districts) may have authority to tax the same property.Few states impose a tax on the value of property.

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