The Facts on Tax Law
What are Tax Laws?
Tax Laws are required rules and regulations that exist in the legal realm of tax and taxation. Tax Laws address the wide range of financial withholdings, requirements, and procedures latent within the gross amount of cost, earnings, or applied value with regard to tax payments required by a taxpayer. Tax Laws address a variety of taxes and taxation procedures; within individual tax processesand procedures exists specified circumstances applicable to the collection and assessment process of that specific tax.
Types of Tax Laws
The following are considered to be some of the most common within the realm of Tax Laws
Types of Taxes
A progressive tax is a type of tax that is considered to fluctuate in accordance with any or all financial increases both in earnings and values; in contrast to a fixed tax rate, the tax laws surrounding a tax that is progressive in nature illustrate a larger tax withholding to exist in tandem with larger earnings – in the United States, income tax laws operate as a progressive taxation system
A regressive tax is considered to be a tax by which the bulk of its respective increases are presumed to be undertaken by individuals earning the lost amount of total income; while a regressive tax may not typically appear as an initial tax burden, the implicit costs within certain taxation may gradually amount to substantial costs and withholding(s) – proposed tax laws implemented to protect those affected by regressive taxation may claim that the upkeep of taxable items far outweighs their initial purchase price
A proportional tax is considered to be a taxation system that operates from tax laws regulating – or preventing – any fluctuation of withholding contingent of individual income; conversely, proportional tax laws mandate that individuals are required to pay taxes strictly on the items, products, and services that they consume – a proportional tax is uniform with regard to income and earning withholding(s)
Direct Tax Laws vs. Indirect Tax Laws
Within the United States, taxes are typically classified by one - of two - primary classification(s); indirect taxes and direct taxes. The nature of this classification presents itself in the method undertaken by the entity responsible for the collection of the individual tax in question. Tax laws and regulation illustrate that a direct tax is any tax that is submitted by an individual – or entity – directly to the Federal Government; conversely, indirect taxes are submitted to a third-party, assessed, and then submitted by the respective intermediary to the Federal Government:
The Direct Tax procedure is governed by tax laws that mandate, authorize, and oversee taxation that includes income tax; income tax is submitted from the individual taxpayer(s) to the government in a direct fashion
The Indirect Tax procedure is governed by tax laws that address taxes uncured through commercial activity, purchases, and retail endeavors; upon a commercial or consumer purchase, applicable taxes are submitted by the taxpayer to the merchant in question – subsequently, the merchant will forward monies rendered from taxation to the Federal Government
Tax Laws and the Internal Revenue Service (IRS)
The Internal Revenue Service (IRS) - The Federal Department of the United States government that administers, maintains, oversees, and regulates the fulfillment of taxation – can be contacted through their toll-free telephone number: (800) 829-1040.
