Q:

Who is responsible for levying taxes?

A:

Quick Answer

In the United States, taxes can be levied by federal, state and local governments. The Internal Revenue System is the federal agency that taxes all income annually.

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Full Answer

All but six states levy taxes on income. States, cities and counties can tax property. State laws with respect to property tax vary widely; some states assume full responsibility, while most delegate some or all of that task to cities or counties. State and local governments can also levy sales taxes.

Businesses may incur other tax burdens, including payroll taxes, which are levied by the federal government to cover Social Security and Medicare, and unemployment tax, which funds the needs of workers who are temporarily unemployed.

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Related Questions

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    What is a luxury tax?

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    A luxury tax is essentially a tax placed on any goods or services the United States government as well as many state governments deem as non-essential. Such a tax is aimed at only those who are wealthy enough to afford luxury items. Despite the fact that many items formerly considered luxury goods no longer are viewed that way, the term persists.

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    What state taxes do you pay in Virginia?

    A:

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    How do you file your Illinois taxes?

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