2007-02-25 07:24:43 · 5 answers · asked by austinp86 1 in Business & Finance ➔ Taxes ➔ United States
I guess my real question is, what IS federal, state, and local?
2007-02-25 07:30:05 · update #1
Surprisingly, they refer to Federal, state and local. They are the three main levels of government in the US. Any person in the US is subject to all Federal laws (because they are in the US) - the state laws of which they are in and in which they reside (because they are in that state), and the local laws of which they are in and in which they reside (because they are in that locality).
Federal is the Federal government - hence the name, "Federal".
State is the state government - hence, "state".
Local is the local government. This is the only one where I could possibly see any sort of confusion on - city, county, incorporated town, or whatever you live in.
2007-02-25 07:28:01 · answer #1 · answered by Rex M 6 · 1⤊ 0⤋
As the names imply, they refer to the various levels of government.
Government in the US is hierarchical. The top level is the Federal government. The Federal government is comprised of three parts, Executive (The President), Legislative (Congress) and Judicial (Federal Courts, including The Supreme Court).
The next level is State government. It's generally similar to the Federal government but at the State level. Some State Legislatures are unicameral, unlike the Federal government which has two houses, The Senate and the House of Representatives.
Local government also exists at several levels such as City, Town, School District, etc.
Each level of government has the right to levy taxes on its citizens. The most common one at the Federal and State level is the ubiquitous income tax. Some Cities also levy income taxes such as New York City. States also often levy sales taxes and sometimes property taxes. At the local level, the most common tax is the property tax, levied on real or personal property owners.
2007-02-25 16:07:03 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
These are the three jurisdictions which most commonly collect taxes from citizens living within their boundaries.
A common reference like this is found on W-2 and other income tax forms which show taxes withheld for either federal (United States), state, or local (city/county) governments.
2007-02-25 15:38:23 · answer #3 · answered by Latigo 3 · 0⤊ 1⤋
These terms are referred to taxes. Taxes paid or charged by the Federal government/ the State government/ or a local or city government.
2007-02-25 15:35:01 · answer #4 · answered by TMAC 5 · 1⤊ 2⤋
These terms are often used when discussing taxes and law.
Federal refers to United States government.
State refers to the state government
Local refers to county, city or township government.
2007-02-25 15:30:01 · answer #5 · answered by Karrose 5 · 1⤊ 1⤋