Not all income tax taxed in the same way. For example, taxpayers owning stock in a corporation and then selling it at a gain or loss must report it on a special schedule. This item and any other gains or losses get calculated separately before they get added to other income. Payroll taxes are an important source of revenue for the Federal Government. Employers are responsible for paying these taxes, which include social security insurance and unemployment compensation.
Employees also pay into the social security program through money withheld from their paychecks.
Some state governments also use payroll taxes to pay for the state's unemployment compensation programs. Over the years, the amount paid in social security taxes has greatly increased. This is because there are fewer workers paying into the system for each retired person now receiving benefits. Today, some workers pay more social security tax than income tax. The most important taxes on consumption are sales and excise taxes.