| US tax law was originated by the federal government. | | | | Most states that have income, gift and estate taxes |
| It is interpreted and adjusted by state, counties and city | | | | and they pattern these taxes on the basis of the |
| government. The types of taxes that individuals face | | | | federal tax system. You will find the same kinds of |
| are staggering. There is no doubt that tax law has an | | | | exemptions and deductions in the state system that is |
| impact on the life of every individual in the US whether | | | | there in the federal system. Many counties and local |
| citizen or visitor. | | | | municipalities have taxes that are designed on the |
| Federal Taxes | | | | basis of real property ownership and local sales taxes. |
| You can get information about federal taxes in title 26 | | | | Local municipality taxes are created at the local level |
| of the US tax code. Tax law for states, counties and | | | | so they do not follow federal or state taxes. However, |
| cities are in regulations and statements issued by the | | | | in order to be collectible, it is mandatory that local |
| state court and respective government authorities. | | | | municipality taxes comply with both federal and state |
| State law is often designed after federal law, but this | | | | US tax law. |
| is not always the case. | | | | All income is subjected to tax in the US regardless of |
| Federal tax law is structured to generate the | | | | where it comes from. According to US tax law, all |
| imposition of taxes which can arise due to a number | | | | property that an individual possess at the time of |
| of events. This includes income tax, gift tax, estate tax, | | | | death is subject to tax. Most US states have an |
| sales tax, excise tax and employment tax. Income tax | | | | estate tax that is combined with the federal estate tax |
| covers both individuals and business entities (such as | | | | but that connection is being phased out. However, the |
| firms and partnerships). There are an incredible number | | | | phase-out of the federal tax is not good in terms of |
| of taxes, but there are also exemptions and | | | | revenue for the states so a few states have passed |
| deductions against those taxes. You can minimize the | | | | their own laws to substitute the dropping revenues. |
| tax amount you owe by using available exemptions | | | | The states of Maryland, Illinois, North Carolina and |
| and deductions. | | | | Washington have already enacted their own estate |
| Types of Taxes | | | | tax laws. |