What is income tax?

Income tax is a tax imposed by the government on individuals and businesses based on their income or profits. It is typically calculated as a percentage of the income earned, with higher income earners paying a higher percentage of their income in taxes. Income tax is used by governments to fund public services and programs, such as education, healthcare, and infrastructure.

Income tax is a tax imposed on the income of an individual or corporation. It is a direct tax, meaning that it is paid directly to the government by the taxpayer. Income tax is typically calculated as a percentage of taxable income, which is the amount of income that is subject to taxation.

There are two main types of income tax: progressive income tax and flat income tax. Progressive income tax is a tax system in which the tax rate increases as income increases. This type of tax system is designed to make sure that people with higher incomes pay a higher percentage of their income in taxes. Flat income tax is a tax system in which the tax rate is the same for all taxpayers, regardless of their income level.

Income tax is a major source of revenue for governments around the world. It is used to fund a variety of public services, such as education, healthcare, and infrastructure.