Income tax in the USA: a special case
The income tax in Uncle Sam’s country is particularly complex. Indeed, the tax is levied there by three different intermediaries and according to a scale very different from ours. Accountants in Texas Taco Tax offers you to understand the income tax in the USA thanks to this page quickly describing the history of this tax, the three different income taxes to finish with the 2018 tax schedule in the United States.
A tax created in pain
The Income Tax, or Income Tax in English, was decreed in 1862, in the midst of the Civil War. The purpose of this tax was to support the war effort in favor of the Northern Union States against the Southern Confederate States. Despite the peace three years later, the Income Tax was subsequently maintained. However, it will not be officially registered in the constitution of the United States until 1913, which is still a year earlier than in France. The Internal Revenue Service, the government agency responsible for its collection, was created on 1 st July 1862. But the Revenue Act, like other tax laws enacted during the 19 th century are one after the other declared unconstitutional by the Supreme Court. From a minimal amount at the start ( 2% of the revenues of the federal budget of the United States), it gradually increased, in particular with the rise of the welfare state and represented in 2014 nearly 50% of the revenues taxes collected by the government.
United States Taxation: Three Levels of Income Tax
Each American taxpayer has to pay three different taxes. He must in fact pay:
a federal tax
a state tax
a local tax (in some cities, such as New York)
This tripartite remedy is similar to the Swiss tax system. Unlike many countries, these taxes have to be paid separately. In addition, state taxes and local taxes are different for each locality . This is the case in Canada, for example. You will therefore pay your tax at a different rate depending on whether you live in Louisiana or New York.
The taxpayer must calculate the amount of his taxes himself. In most cases, taxpayers prefer to hire third-party companies to do this calculation for them!
So there are states where American taxpayers have to pay triple tax. Conversely, some states, particularly worse off in terms of taxation, not Perl Event no imp O t on income, this is the case:
From Texas,
From South Dakota,
From Alaska,
From Florida
From Nevada.
By comparison, a New Yorker will therefore pay a much higher income tax than a Texan. In summary, comparing the income tax of a am taxpayer Rican with that of a foreign taxpayer has no sense since we observed large disparity é s tax even within the USA. accounting firms Dallas Comparing the tax of an inhabitant of a specific region of the world with that of an American taxpayer in a particular state would therefore be more judicious. It should be noted, however, that the tax burden on American individuals remains one of the lowest in the world. A definite advantage that we must keep in mind.
Income tax reporting obligations in the USA
Before April 15, U.S. taxpayers must complete a federal tax return AND state tax return. A withholding tax is made on most income paid by a third party payer (employer, banking establishments, social security, etc.):
wages
pensions
annuities
long-term capital gains
real estate capital gains
farm income
etc
US taxpayers must, however, complete an income tax return in order to calculate the actual tax by making any adjustments to the taxable bases, by including income not subject to withholding tax (property income, income from the self-employed, etc.).
