ETHEL WILSON

Econ 1740

August 5, 2017

TOPIC: TAXES

Taking the Economic history of America class at the Salt lake community college has expanded
my historical knowledge, developed my critical thinking skills as well as opened my mind and
level of thinking to a new perspective in appreciating life challenges.

The purpose of this paper is to determine my percentage tax rate, and how much tax is
deducted from my monthly income as it relates to my personal income and other personal
transaction activities in my daily decision making process.

Taxes is defined as generally an involuntary fee levied on individuals or corporations that is

enforced by a government entity, whether local, regional or national in order to finance
government activities. (www.investopedia.com)

In economics, taxes fall on whomever pays the burden of the tax, whether a business entity or
the end consumer of the entities goods and services. Taxes are the major source of funds of the
U.S federal government, apart from borrowing. The funds are used for public works and
services. The deliberate failure to pay ones full tax liability is tax evasion, which is punishable
by law. Government utilizes a department to collect taxes, and this function is performed by tax
agencies and the internal revenue service. Individuals get back tax refunds if tax deductions are
in excess of what was actually owed to the government.

There are several type of taxes, but will discuss a few. They include the followings:

Income tax: - this is a percentage of individual or corporate earnings filled to the federal
government. Under individuals personal income, tax deductions such as Federal, State,
Medicare and Social security are deducted and remitted to the government.
Utilities taxes: - are levies on utilities such as water, gas, electricity, phone, cables etc.
These levies are used to fund these sectors for the provision of these goods and
services.
Sales taxes are taxes levied on certain goods and services.
Property tax is based on the value of land and property assets.
Tariffs are taxes on imported goods imposed in the aim of strengthen internal
businesses.
Referencing the tax payment exercise sheet, for the month of July 2017, my tax percentage rate
came up to 22% after taking into consideration, total gross income of $1803.63 and total tax
deductions of $402.71 for the month.

In conclusion, tax system vary widely among nations, and it is important for individuals and
corporations to carefully study a new locales tax laws before earning or doing business there.

References:

www.investopedia.com

Paycheck slips for the month of July 2017

Sales receipts for the month of July 2017

Utilities bill for the month of July 2017