Types of taxes

by sabitha 2010-02-22 17:00:56

Types of taxes
Income tax
s commonly a progressive tax because the tax rate increases with increasing income. For this reason, it is generally advocated by those who think that taxation should be borne more by the rich than by the poor, even to the point of serving as a form of social redistribution.
Capital gains tax
A capital gain tax is the tax levied of the profit realised upon the sale of an asset. In many cases, the amount of a capital gain is treated as income and subject to the marginal rate of income tax.
Corporation tax
Corporation tax is a tax on the profits (and often also capital gains) of a company. In most countries, the taxable profit is effectively the difference in the value of the co
mpany from the last time corporation tax was levied.
Poll tax
A poll tax, or capitation tax, is a tax that levies a set amount per individual. The earliest tax mentioned in the Bible of a half-shekel per annum from each adult Jew (Ex. 30:11-16) was a form of poll tax. Poll taxes are regressive, since they take the same amount of money (and hence, a higher proportion of income) for poorer individuals as for richer individuals. Poll taxes are difficult to cheat. A poll tax may also be called a per capita tax or a capitation or payroll tax.


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