Taxes

Friday, October 2, 2009

There are four broad categories of taxes:

1. Personal Income Taxes
2. Corporate Income Taxes
3. Indirect Taxes
4. Social Security Taxes

Personal Income Taxes
Personal Income Taxes are the taxes paid by individuals on their labor and capital incomes. These taxes have fluctuated between 8 and 10 percent of GNP and have averaged arround 9 percent of GNP.

Corporate Income Taxes
Corporate Income taxes are the taxes that companies pay on their profits.

Indirect Taxes
Indirect Taxes are the taxes on the goods and services that we buy and include the custom duties that we pay when we import goods from other countries.

Social Security Taxes
Social Security taxes are the taxes that are paid by employees to finance the social security programs.