Bergen County Tax Records – US has distinctive federal, state, and local governments with taxes imposed at each of these levels. Taxes are levied on earning, wage, wealth, sales, capital gains, dividends, imports, estates also gifts, as well as various fees. In 2010, taxes collected by federal, state, or municipal governments amounted to 24.8% of GDP. In the OECD, only Chile or Mexico are taxed less as a share of their GDP.
However, taxes fall much more heavily on labour earning than on capital earning. Different taxes also subventions for divergent forms of revenue or expenditure can also constitute a form of indirect taxation of some activities over others. For example, personal expenditure on higher education can be said to be “taxed” at a high rate, compared to other forms of individual spending which are formally approved as investments.
Taxes are enforched on net income of individuals also corporations by the federal, most state, also some local governments. Citizens also residents are taxed on worldwide earning or authorized a credit for overseas taxes. Earning subject to tax is determined under tax accounting rules, not financial accounting principles, and includes almost all earning from whatever source. Most corporate spendings reduce taxable earning, though limits apply to a few costs. Personals are allowed to bring down taxable revenue by personal allowances or certain non-business expenses, including house mortgage interest, state also local taxes, social contributions, and medical and specific other spendings incurred above certain percentages of earning. State rules for determining taxable revenue oftentimes differ from federal rules. Federal marginal tax rates differ from 10% to 39.6% of taxable income. State or local tax rates differ widely by jurisdiction, from 0% to 13.30% of income, or many are graduated. State taxes are generally treated as a discountable cost for federal tax calculation, although the 2017 tax law enforched a $10,000 limit on the state and local tax (“SALT”) discount, which raised the effective tax rate on medium and high earners in high tax states. Before the SALT deduction limit, the average discount exceeded $10,000 in most of the Midwest, also exceeded $11,000 in most of the Northeastern United States, like California also Oregon. The states impacted the most by the limit were the tri-state area (NY, NJ, and CT) also California; the average SALT discount in those states was greater than $17,000 in 2014.