"Bill Indicted for Brazen Tax Revenue Embezzlement"
In the United States, citizens face a broad and complex spectrum of taxes and fees spanning federal, state, and local levels, collectively known as the overall tax burden. This article aims to provide an overview of the various taxes and fees that individuals may encounter throughout their lives.
### Federal Taxes
The federal tax system includes:
- **Federal income tax:** A progressive tax levied on individual and corporate earnings. - **Social Security and Medicare taxes:** Payroll taxes that fund social insurance programs. - **Federal estate and gift tax:** A tax that applies to large transfers of wealth upon death or as gifts. The current federal estate tax exemption is $13.99 million per individual (2025), set to rise to $15 million per person in 2026 under new proposals. - **Federal excise taxes:** Taxes applied to specific goods like fuel, tobacco, and alcohol. - **Federal Universal Service Fund Fee and Cost Recovery Charges:** Telecommunications-related fees that fund universal access to services.
### State Taxes
State taxes include:
- **State income tax:** Varies by state; some states have no income tax. - **State corporate tax:** A tax levied on businesses operating within the state. - **State property tax:** A tax applied on real estate and sometimes personal property. - **State excise taxes:** Additional levies on certain goods and services. - **State-level sales and use tax:** A tax charged on retail sales and usage of goods. - **State Universal Service or Lifeline surcharges:** Funds that telecommunication services for low-income or rural customers.
### Local Taxes
Local taxes include:
- **Local income tax:** In some municipalities. - **Local property tax:** A major revenue source for local governments. - **Local sales tax:** Added on top of state sales tax in many areas. - **Local excise taxes:** Levied on specific local goods or services. - **E911 Taxes and Fees:** Funding for Emergency telephone services at local or county levels.
### Utility and Communication Fees
Utility and communication fees include:
- **Regulatory Recovery Fees, Franchise Fees, and Surcharges:** Fees that utility customers pay, often embedded in bills for electricity, water, gas, and telecom services, which help cover the costs of regulatory oversight and local government franchises. - **Telephone Number Storage Fee:** A monthly charge to cover the storage of unused telephone numbers. Customers will be assessed a monthly fee for each unused telephone number stored beyond a 90% utilization threshold. - **E911 Taxes and Fees:** Funding for E911 Emergency Services at the state, county, or local levels. - **Municipal Franchise Fee:** A monthly charge imposed by local jurisdictions to recover costs associated with providing telephone service, including installation of underground conduit, outside telephone wires, and telephone poles. - **License Tax:** A tax levied on the service provider for the privilege of soliciting and conducting business in a jurisdiction. - **Business and Occupation Taxes:** Taxes imposed on a company for the privilege of doing business in the taxing jurisdiction, and are typically imposed on telecommunications providers.
### Other Fees and Surcharges
Other fees and surcharges include:
- **The Deaf Tax Surcharge:** Imposed on telecommunications providers to provide telecommunications service to hearing and speech-impaired individuals. - **The Poison Control Surcharge:** Imposed on telecommunications providers to provide funding for Poison Control Centers. - **State and Local Excise Tax:** An excise tax imposed on payments received for the privilege of sending or receiving telecommunications messages.
### The Impact of Taxes and Fees
These taxes and fees collectively contribute to the US tax burden by funding essential government functions, imposing multiple layers of taxation, affecting wealth transfer through estate taxes, and adding to the cost of living through utility and communication fees.
The diversity of these taxes reflects the federal structure of the US government, where multiple jurisdictions levy their own taxes to fund services at various levels, creating a complex tax environment for citizens throughout their lives.
In summary, US citizens are liable for a wide array of federal, state, and local taxes and fees covering income, property, consumption, wealth transfer, and utilities. These taxes together form a significant portion of the financial responsibilities that individuals bear from birth until death, shaping the overall economic landscape and government funding in the country.
- In the United States, taxes and fees not only include federal income tax, state income tax, and local income tax, but also extend to payroll taxes like Social Security and Medicare taxes that fund social insurance programs.
- The overall tax burden in the United States is also affected by business taxes such as federal corporate tax and state corporate tax, as well as politics-related fees like the Universal Service Fund Fee and Cost Recovery Charges.
- General news often highlight the impact of utility and communication fees on citizens' lives, including regulatory Recovery Fees, Franchise Fees, and Surcharges, as well as fees for emergency telephone services (E911 Taxes and Fees).
