To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labour equivalent.
The U.S. tax system is based on both a federal and state level. There are several types of taxes such as income tax, sales tax, payroll tax, consumer tax, and estate and gift tax. Federal and state taxes are completely separate and each has its own authority to charge taxes. The federal government does not interfere with state taxation. Each state has its own tax system that is separate from the other states. Within the state, local governments, regional entities such as school charge taxes.