human
I'm a bit confused about how the US tax system works. What are the different types of taxes and how do they work?
assistant
In the United States, there are several types of taxes that individuals must pay. Federal income taxes are paid to the Internal Revenue Service (IRS) by all taxpayers who have taxable income. State and local taxes are also required payments for many residents. Property taxes are imposed on real property such as homes, businesses, land, and vehicles. Sales taxes are collected when people buy goods or services from certain vendors. Payroll taxes are deducted from workers' wages and deposited into the Social Security Trust Fund. Finally, excise taxes are imposed on specific activities such as cigarettes, alcohol, and gasoline.