How does the US handle taxes?

The United States tax system is complex and varies depending on a person's income level and circumstances. The federal government uses a progressive tax system, which means that people who earn more money pay a higher percentage of their income in taxes. There are several types of taxes in the US, including income tax, sales tax, and property tax.

Income tax is the largest source of revenue for the US government. It is collected by the Internal Revenue Service (IRS) and is based on a person's income and filing status. The federal government has a marginal tax rate system, which means that different portions of a person's income are taxed at different rates. The tax brackets are adjusted annually for inflation.

Sales tax is a tax on goods and services purchased. The amount of sales tax charged varies by state and can range from 0% to over 10%. Property tax is a tax on real estate and is based on the value of the property.

In addition to federal taxes, many states and local governments also collect taxes. State income taxes, sales taxes, and property taxes vary by state and can be progressive or regressive.