What are taxes paid by employees to government authorities classified as?

Taxes paid by employees to government authorities are classified as income tax because these taxes are based on the income earned by individuals and are typically withheld directly from their paychecks by their employers. This withholding includes federal, state, and sometimes local taxes, which contribute to funding government services and programs.

Income tax is a progressive tax, meaning that the rate increases as the taxpayer's income increases. It is distinctive in that it directly impacts the earnings of employees, tying the tax obligation to their personal financial situation. On the other hand, property tax relates to real estate ownership, sales tax is associated with the purchase of goods and services, and capital gains tax pertains to the profit made from the sale of assets like stocks or property. Each of those other tax types serves different purposes and targets different sources of income or value.