Could state taxes be considered federal taxes?

Question

or is state taxes considered to be something on it's own? if they are different can you please explain?

Answer 1

The U.S. is a federated republic: 50 states under a Federal government. Both the Federal government AND the 50 STATE governments have the right and the ability to levy taxes and collect taxes.

There are some Federal taxes that EVERYONE pays, the best example being Income Tax. There are also Federal taxes collected that you may or may not be aware that you are paying: there are some cents (18?) that you pay for each gallon of gasoline that you buy; there is ALSO a State tax per gallon of gasoline; those taxes are used for highway building and repair (Federal Highway Trust Fund).

Example: California has an 8.25% sales tax...people in other states don't pay tax to California unless they buy something IN California...that's because California is a STATE, one of 50 in the U.S.

the FEDERAL government is the U.S. Government...its tax collection department is called the Internal Revenue Service.

In January you receive a Form 1099 from your employer for wages received the previous year: the form that you receive has several sections to it.

One section is labeled: Return with your STATE income tax return; one is marked: Return with your FEDERAL tax return; and one is labeled: keep this copy for your records. So: you pay money to the State you live (or shop) in AND you pay Federal taxes.

Answer 2

They are different.  Federal taxes are amounts you have to pay to the federal government.  State taxes are amounts you pay to your state.

Answer 3

State taxes are not a federal debt, but states can and do submit information to the IRS for collection.  So any refund or rebate that you might otherwise receive can go to pay off various non-federal debts including defaulted student loans, child support and state taxes.

Answer 4

It's very easy really... State Taxes go to the state, Federal Taxes go to the federal government.  The state's congress dictate how much you pay for state taxes, the federal senate/congress dictate how much you pay for federal taxes.  Texas, Nevada, Florida and maybe some other states do not have state taxes.  They get their finances from business taxes, sales taxes, and property taxes.