Personal
A personal or individual income tax is levied as a percentage of a person's wages and salaries, with some deductions permitted, along with the net income or loss from businesses and investments. It is typically collected on a pay-as-you-earn basis, with corrections at the end of the year for over payments and under payments. Income tax systems typically offer exemptions, deductions, or credits which lessen the total tax liability; these are frequently a method of rewarding income-use-patterns encouraged by the government (home ownership, supporting children, charitable contributions). Tax structures may allow losses from one type of income to be counted against another. For example, a loss from businesses and investments might offset wages before calculating the taxes due.
Read more about this topic: Income Tax, Types
Famous quotes containing the word personal:
“If society gives up the right to impose the death penalty, then self help will appear again and personal vendettas will be around the corner.”
—Johann Wolfgang Von Goethe (1749–1832)
“The personal touch between the people and the man to whom they temporarily delegated power of course conduces to a better understanding between them. Moreover, I ought not to omit to mention as a useful result of my journeying that I am to visit a great many expositions and fairs, and that the curiosity to see the President will certainly increase the box receipts and tend to rescue many commendable enterprises from financial disaster.”
—William Howard Taft (1857–1930)
“The dialectic between change and continuity is a painful but deeply instructive one, in personal life as in the life of a people. To “see the light” too often has meant rejecting the treasures found in darkness.”
—Adrienne Rich (b. 1929)