The term 'Levied Taxes' is included in the Accounting edition of the Financial Dictionary. Get your copy on Amazon in Kindle, Paperback or Audio edition. Check for lowest price here...
Levied taxes are taxes that are forcefully collected from an individual, business, or other entity. Among the many taxes most frequently collected these days are income taxes. These taxes could be said to be levied, since the law requires that an individual’s income tax is levied for the government by the company where they work.
Three main types of tax systems are in effect in the world today where income is concerned. These include progressive, proportional, and regressive tax systems. Progressive taxes levied are those that employ progressively greater rates of tax as earnings are higher. As an example, the first $10,000 that an individual makes might be taxed at only five percent, while the next $10,000 is possibly taxed at a rate of ten percent, and income above this could be taxed at a twenty percent rate.
Proportional taxes use a pre set flat rate of tax. This applies to all earnings, no matter how high or low they are. With a ten percent flat rate, everyone will pay their ten percent of income as taxes levied, regardless of what amount of money they actually make.
Regressive taxes are said to hurt the poor by shifting the tax burden to lower income earners. This type of tax levy only taxes income to a certain dollar level, such as the first $80,000. Any money made above this amount would simply not be taxed. In reality, most tax systems employ the various kinds of tax levying methods to address various forms of income.
Levied taxes also apply to corporations and businesses. The income of a company is taxed in what is known as a corporate tax. This is sometimes alternatively referred to as a profit tax or corporate income tax. With corporate taxes levied, the net income is generally the figure that is taxed. Net income refers to the difference of gross income and expenses and other allowable write offs.
With individuals, the total income for a family or individual is commonly taxed. Some deductions are usually allowed before the taxes to be levied are determined. Income may be reduced by a certain amount as a result of how many children a family has to support, as an example.
There are many other forms of taxes levied in modern capitalist countries such as Great Britain and the United States. More than two hundred different types of taxes can be identified in the U.S. alone. These include such various taxes levied as income tax, sales tax, property tax, estate tax, capital gains tax, dividends tax, gasoline taxes, leisure taxes, luxury items taxes, and so called sin taxes on items such as cigarettes and alcohol. The United States has been called the most heavily taxed society in all of world history.