The United States of America (commonly referred to as the United States, the U.S., the USA, or America) is a federal constitutional republic comprising fifty states and a federal district. The country is situated mostly in central North America, where its forty-eight contiguous states and Washington, D.C., the capital district, lie between the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the south. The state of Alaska is in the northwest of the continent, with Canada to its east and Russia to the west across the Bering Strait. The state of Hawaii is an archipelago in the mid-Pacific. The country also possesses several territories, or insular areas, scattered around the Caribbean and Pacific.

Economy

The United States has a capitalist mixed economy, which is fueled by abundant natural resources, a well-developed infrastructure, and high productivity. According to the International Monetary Fund, the U.S. GDP of $14.3 trillion constitutes 23% of the gross world product at market exchange rates and almost 21% of the gross world product at purchasing power parity (PPP). The largest national GDP in the world, it was about 4% less than the combined GDP of the European Union at PPP in 2007. The country ranks eighth in the world in nominal GDP per capita and fourth in GDP per capita at PPP.[4] The United States is the largest importer of goods and third largest exporter, though exports per capita are relatively low. Canada, China, Mexico, Japan, and Germany are its top trading partners. The leading export commodity is electrical machinery, while vehicles constitute the leading import.[64] After an expansion that lasted just over six years, the U.S. economy has been in recession since December 2007.

The private sector constitutes the bulk of the economy, with government activity accounting for 12.4% of GDP. The economy is postindustrial, with the service sector contributing 67.8% of GDP. The leading business field by gross business receipts is wholesale and retail trade; by net income it is finance and insurance. The United States remains an industrial power, with chemical products the leading manufacturing field. The United States is the third largest producer of oil in the world, as well as its largest importer. It is the world's number one producer of electrical and nuclear energy, as well as liquid natural gas, sulfur, phosphates, and salt. While agriculture accounts for just under 1% of GDP, the United States is the world's top producer of corn and soybeans. The New York Stock Exchange is the world's largest by dollar volume. Coca-Cola and McDonald's are the two most recognized brands in the world.

Tax in USA

The USA tax has two components—the household tax, which replaces the current household income tax, and the business tax, which replaces the corporate income tax. A fundamental purpose of the USA tax is to raise the level of national saving and investment. It accomplishes this by making all household saving and business investment in capital goods tax-deductible.