Tuesday, May 8, 2007

Taxes - How does the government get money?

The three main taxes in United States we pay are Federal Taxes, State Taxes, and City/Local Taxes. We also pay miscellaneous taxes such as the pollution tax. The Federal Tax covers the payroll and income tax which is taken out from your wage, the estate tax which is collected from a deceased person's estate, and the excise tax which is taken from the sale of tobacco, gasoline and alcoholic beverages. The State Taxes are mostly the same as the Federal Taxes but also have a General Tax which includes the sale of most general purchases. The City/Local taxes are basically the same as the Federal and State Taxes.

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