Taxation
Taxation
Tax Law Fact: A tax is a charge imposed by the government on people, entities, or on property in order
to raise revenue.
Internal Revenue Service Fact: The IRS is the branch of the U.S. Department of Treasury charged with
enforcing the internal revenue code and providing taxpayer education.
Use Tax Fact: A use tax is a tax on purchases made outside the state for use in the state. Residents
are responsible for paying the use tax on purchases for which no state sales or use tax has been
charged. The use tax applies to transactions that would be subject to sales tax if the purchase were
made in the state. The use tax rate is the generally the same as the sales tax rate that would apply to
the purchase if it were made in the state. Use tax is often levied on purchases made through the
Internet.
If the retailer is located out-of-state and does not have a physical location or other type of physical
representation in the state, the state cannot require the retailer to collect the state tax. However, some
out-of-state retailers voluntarily collect the state tax as a convenience to their customers.
Sales Tax Fact: A tax levied by a state or city on the retail price of an item, collected by the retailer.
Corporate Tax Fact: In the 2004 election, John Kerry is asking for lower corporate taxes in exchange
for making it more difficult to outsource jobs abroad.
Income Tax Fact: Income tax is a tax on an individual or institution’s net income.
Estate Tax Fact: An estate tax imposed by the federal government and some state governments on the
transfer of assets to heirs.
Property Tax Fact: The most frequent use of property taxes in the U.S. is by municipal governments,
authorized to generate necessary revenue in this fashion under state law.
Tax Credits Fact: Tax credits reduce taxes payable to the same extent for all taxpayers, regardless of
their income level and marginal tax rate.
Tax Deductions Fact: Tax deductions are subtractions from income before determining what amount
of income is taxable.
Self Employment Taxes Fact: Self employed people must also pay Medicare and social security taxes
of up to nearly 15 percent of their gross income.
Tax Law Fact: A tax is a charge imposed by the government on people, entities, or on property in order
to raise revenue.
Internal Revenue Service Fact: The IRS is the branch of the U.S. Department of Treasury charged with
enforcing the internal revenue code and providing taxpayer education.
Use Tax Fact: A use tax is a tax on purchases made outside the state for use in the state. Residents
are responsible for paying the use tax on purchases for which no state sales or use tax has been
charged. The use tax applies to transactions that would be subject to sales tax if the purchase were
made in the state. The use tax rate is the generally the same as the sales tax rate that would apply to
the purchase if it were made in the state. Use tax is often levied on purchases made through the
Internet.
If the retailer is located out-of-state and does not have a physical location or other type of physical
representation in the state, the state cannot require the retailer to collect the state tax. However, some
out-of-state retailers voluntarily collect the state tax as a convenience to their customers.
Sales Tax Fact: A tax levied by a state or city on the retail price of an item, collected by the retailer.
Corporate Tax Fact: In the 2004 election, John Kerry is asking for lower corporate taxes in exchange
for making it more difficult to outsource jobs abroad.
Income Tax Fact: Income tax is a tax on an individual or institution’s net income.
Estate Tax Fact: An estate tax imposed by the federal government and some state governments on the
transfer of assets to heirs.
Property Tax Fact: The most frequent use of property taxes in the U.S. is by municipal governments,
authorized to generate necessary revenue in this fashion under state law.
Tax Credits Fact: Tax credits reduce taxes payable to the same extent for all taxpayers, regardless of
their income level and marginal tax rate.
Tax Deductions Fact: Tax deductions are subtractions from income before determining what amount
of income is taxable.
Self Employment Taxes Fact: Self employed people must also pay Medicare and social security taxes
of up to nearly 15 percent of their gross income.
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| Law Offices of Christopher J. Shellito, Esq., LLC 5510 Pearl Road, Suite 300 Parma, Ohio 44129 (440) 885-LAWS (5297) (440) 885-5318 Facsimile E-Mail: chris@shellitolaw.com |