01 – US taxation occurs at three levels

US taxation occurs at three levels (Taxation Levels in the US)

1.    Federal Taxation (Central Government)
o   Applies to all individuals and businesses in the US.
o   Types: Income Tax, Corporate Tax, Payroll Tax, Excise Tax.
o   Example: IRS collects income tax based on earnings.

2.    State Taxation
o   Applied by individual states.
o   Types: State Income Tax, Sales Tax, State Corporate Tax.
o   Example: California charges state income tax, but Florida does not.

3.    Local Taxation (City/County)
o   Levied by cities, counties, or municipalities.
o   Types: Property Tax, Local Sales Tax, City Income Tax.
o   Example: New York City charges an additional city income tax on residents.