section_path: Law and government/Taxation
section_name: Taxation
paragraph_text: Taxation
  
  Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. Taxes are levied by the federal government, by the state governments, and often by local governments, which may include counties, municipalities, township, school districts, and other special-purpose districts, which include fire, utility, and transit districts.
  
  Forms of taxation include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees. When taxation by all government levels taken into consideration, the total taxation as percentage of GDP was approximately a quarter of GDP in 2011. Share of black market in the U.S. economy is very low compared to other countries.
  
  Although a federal wealth tax is prohibited by the United States Constitution unless the receipts are distributed to the States by their populations, state and local government property tax amount to a wealth tax on real estate, and because capital gains are taxed on nominal instead of inflation-adjusted profits, the capital gains tax amounts to a wealth tax on the inflation rate.
  
  U.S. taxation is generally progressive, especially at the federal level, and is among the most progressive in the developed world. There is debate over whether taxes should be more or less progressive.
  
  According to the Tax Justice Network in 2022, the US fuels more global financial secrecy than Switzerland, Cayman and Bermuda combined.
  
  Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. Taxes are levied by the federal government, by the state governments, and often by local governments, which may include counties, municipalities, township, school districts, and other special-purpose districts, which include fire, utility, and transit districts.
  
  Forms of taxation include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees. When taxation by all government levels taken into consideration, the total taxation as percentage of GDP was approximately a quarter of GDP in 2011. Share of black market in the U.S. economy is very low compared to other countries.
  
  Although a federal wealth tax is prohibited by the United States Constitution unless the receipts are distributed to the States by their populations, state and local government property tax amount to a wealth tax on real estate, and because capital gains are taxed on nominal instead of inflation-adjusted profits, the capital gains tax amounts to a wealth tax on the inflation rate.
  
  U.S. taxation is generally progressive, especially at the federal level, and is among the most progressive in the developed world. There is debate over whether taxes should be more or less progressive.
  
  According to the Tax Justice Network in 2022, the US fuels more global financial secrecy than Switzerland, Cayman and Bermuda combined.
  
  Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. Taxes are levied by the federal government, by the state governments, and often by local governments, which may include counties, municipalities, township, school districts, and other special-purpose districts, which include fire, utility, and transit districts.
  
  Forms of taxation include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees. When taxation by all government levels taken into consideration, the total taxation as percentage of GDP was approximately a quarter of GDP in 2011. Share of black market in the U.S. economy is very low compared to other countries.
  
  Although a federal wealth tax is prohibited by the United States Constitution unless the receipts are distributed to the States by their populations, state and local government property tax amount to a wealth tax on real estate, and because capital gains are taxed on nominal instead of inflation-adjusted profits, the capital gains tax amounts to a wealth tax on the inflation rate.
  
  U.S. taxation is generally progressive, especially at the federal level, and is among the most progressive in the developed world. There is debate over whether taxes should be more or less progressive.
  
  According to the Tax Justice Network in 2022, the US fuels more global financial secrecy than Switzerland, Cayman and Bermuda combined.