Income Tax

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Income Tax

Income Tax means:
a tax based on the income earned by a person or business. The income tax is the main source of revenue for the federal government and one of the main sources for many states.

See also other Tax Terms and Definitions in U.S.A.

progressive tax; sales tax; value-added tax.

See Income Tax, Income Tax in India and Income Tax.

See Income Tax Law and Income Tax Law.

For INCOME TAX CREDIT, see: Tax Credit.

See Indirect Tax in the U.S. Reference and Indirect Tax in the International reference.

See Sales tax in the U.S. Encyclopedia and Sales tax in the International Encyclopedia

Description and Definition of Income Tax

Tax on both earned income, i.e. salaries, wages, tips, and commissions – and unearned income, i.e. interest from savings accounts, dividend, and rents, etc. This is the main source of revenue for the U.S. Government and many states. The U.S. imposed a temporary income tax during the Civil War and the system became permanent with the adoption of the 16th amendment to the U.S. Constitution in 1913. Since 1919 most U.S. states have adopted the tax, as have several cities, beginning with Philadelphia in 1939.

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