Income tax and Consumption tax
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Very basically income tax is a tax deducted from your paychecks. If you’re self employed or a freelancer the taxes levied will be due by April based on your rate based on income from the previous year ended at the end of December. A consumption tax is something paid for goods purchased. Every time you put gas in your car a portion of the per a gallon rate you pay is a consumption tax. Sales taxes I believe are a consumption tax. They are collected by the merchant or vendor at the time of purchase, and then they pay those collected taxes to whatever relevant government agency. I think consumption taxes are usually state taxes.
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