What are the Different Income Tax Regulations?
In most places in today’s world, the laws and regulations that govern taxation are lengthy and complex, and detailing them all would be impossible. However, as complicated as income tax regulations are, the basic ideas behind them can be simple and easy to explain. In general, a person’s gross income, as defined for tax purposes, is represented by all of that person’s income from any source, except from those sources that are exempt from taxes. This amount, in most countries, is taxed on a graduated or “progressive” scale, where the higher the person’s income, the more he will pay in taxes, both as a percentage and as a numerical amount. Different types of income are taxed in different ways. For instance, the income tax regulations for ordinary income, like wages, are more complex than are the laws regarding capital gains income. Self-employed individuals also pay taxes differently than wage earners or salaried employees. Income tax regulations in the United States dictate that most wa
