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US is one of two states in the world that taxes its non-inhabitant citizens on worldwide revenue, in the same method and rates as inhabitants; the other is Eritrea. The U.S. Supreme Court established the constitutionality of imposition of such a tax in the case of Cook v. Tait.

Payroll taxes are imposed by the federal and all state governments. These inclusive Social Security or Medicare taxes imposed on both employers also employees, at a combined rate of 15.3% (13.3% for 2011 and 2012). Social Security tax applies only to the 1st $106,800 of wages in 2009 thru 2011. None the less, benefits are just accrued on the first $106,800 of salary. Employers must withstand revenue taxes on wages. An unemployment tax or particular other collects apply to employers. Wage taxes have dramatically raised as a part of federal revenue since the 1950s, while company revenue taxes have fallen as a share of revenue. (Corporate profits have not fallen as a share of GDP).

Wealth taxes are imposed by most local governments or many particural goal authorities refer to the fair market value of property. School and another authorities are oftentimes separately governed, and impose separate taxes. Treasure tax is mostly enforced just on realty, though several jurisdictions tax some forms of business wealth. Property tax rules also rates diverge widely with annual median rates ranging from 0.2% to 1.9% of a treasure’s value basing on the state.

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