<human>: I'm a bit confused about how the US tax system works. What are the different types of taxes and how do they work?
<bot>: The main categories of taxes in the United States are income taxes, payroll taxes, sales taxes, property taxes, capital gains taxes, estate taxes, and excise taxes. Income taxes are imposed on individuals or entities that have taxable income, which is usually earned through wages or self-employment. Payroll taxes are imposed on employers to fund social security and Medicare benefits. Sales taxes are imposed on goods and services sold within the jurisdiction. Property taxes are imposed on real property such as land and buildings. Capital gains taxes are imposed when an individual sells assets at a higher price than what was originally paid for them. Estate taxes are imposed on certain transfers of property after death. Excise taxes are imposed on specific activities such as alcohol and tobacco products.