Mizan Press

Tax collected by federal is income tax in United States. Tax rate is directly proportional to income of the individual. There are different groups taxed directly or indirectly through federal laws. The corporations and individuals are taxed directly; the trusts and estates are taxed on basis of undistributed income. The partnerships are generally not taxed but taxed on their shares of partnership income. The residents and citizens under federal law are taxed with respect to worldwide income. The non residents are taxed with limits under jurisdiction. The fed tax collected is related to the person income. The personal earnings, business income and capital gains are subjected to income tax. The personal income tax is related to pay as you earn basis and it is the method to tax the individual without load on them. Taxing is to help poor. Not all citizens in the country are meeting the basic needs and there are many of them under the poverty line. To help them and to nourish them tax is introduced. Wealth is unevenly distributed in all countries. People with more wealth will always increase their wealth. Rich get richer and poor get poor. So tax is the only way to run the democratic and republic government in any state.