Taxes- How Does The Government Get Money

Americans pay billions of dollars in taxes every year. Some pay more taxes than others because their income or amount of assets. On the other hand there are taxes that everyone has to pay. These include sales tax, social security, medicare and federal/ state income tax. The federal government gets its money from the taxes that people pay There are many types of taxes that people have to pay. For example there are Federal taxes, State taxes, property tax and sales tax. Everyone does not have to pay every tax. Taxes are subject to change depending on the government's need for money.

An example of what/how taxes are collected are as follows:

Federal Tax

Income Tax: Taken from wages, bank accounts and rents.
Excise Tax: Tax on tobacco, gasoline and alcohol.
Payroll Tax: Taken from salaries and wages.
Estate Tax: Taken from a deceased person’s estate.
Gift Tax: Taken from the money in the transfer of money between live people.

State Tax

General States Tax: Collected from general sales.
Inheritance Tax: Taken from a person that has inherited something from a deceased person.
Excise Tax: Tax on tobacco, gasoline and alcohol.
Estate Tax: Taken from a deceased person’s estate.

City/Local Taxes

General Sale Tax: Collected from general sales
Excise Tax: Tax on tobacco, gasoline and alcohol.
Property Tax: Taken from financial and real assets, including stocks, bonds, houses, cars and artwork.