Taxation is a term that many people have heard, but do not fully understand. It is actually a larger part of your daily life than you realize.. We see taxes in our daily life when we purchase items like groceries or automobiles, on our paychecks from work and in other vital areas of our life. Understanding how taxation works will help you feel more comfortable when filling out tax papers before starting your first day at work. Read on to find out about how taxation works in different areas of your life.
What is Taxation?
Taxation is a term used when a taxing authority, usually the government, imposes financial obligations on its citizens. Paying taxes can be imposed in different areas in our daily lives and has been around for many years throughout the history of the world.
What Are Examples of Taxation? There are many different types of taxation from the federal government that come from different levels. Income taxes, payroll taxes that pay for Medicaid, Medicare and Social Security are just a few of the major taxes that citizens incur. Fuel taxes for both diesel and gasoline are also imposed government taxes.
What Is The Purpose of Taxation?
Government uses taxes from its citizens to help with funding different departments and machineries. These facilities are critical in the functioning of the government on every level from federal, state and local.
What Are The Tax Doctrines Under Taxation?
There are many doctrines used for taxation by the government to make sure that the exchange of taxes from a citizen to the government are legal. These are: Evasion vs Avoidance, Business Purpose doctrine, Substance Over Form, Sham Entity, Sham Transaction, Step Transaction doctrine and Assignment of Income.
If you feel that you have been violated while paying taxes, then find a certified tax attorney to help you with your questions. A tax attorney firm can help you with the process of taxation and how it applies to you. Once you find a certified tax attorney, like dallolawgroup.com they will sit down with you in consultation and help you discover a new way of understanding your taxes. It is something that affects every area of your life, no matter what phase of life you are in.
