The main forms of taxation most people know are sales tax and income tax. These taxes are charged on both a federal and state level. Sales tax is a tax that is charged as a percentage of the cost of an item (some states do not tax food, some do not tax clothes, it varies a lot from state to state), so the more an item costs, the more will be due in a tax. Income tax is a direct tax on a person’s income, meaning that a percentage of your paycheck is taken out for tax reasons. These taxes are not simply ways the government gets money for their budget, however, the money that is paid in taxes is used to fund government agencies such as social security, which benefits
The main forms of taxation most people know are sales tax and income tax. These taxes are charged on both a federal and state level. Sales tax is a tax that is charged as a percentage of the cost of an item (some states do not tax food, some do not tax clothes, it varies a lot from state to state), so the more an item costs, the more will be due in a tax. Income tax is a direct tax on a person’s income, meaning that a percentage of your paycheck is taken out for tax reasons. These taxes are not simply ways the government gets money for their budget, however, the money that is paid in taxes is used to fund government agencies such as social security, which benefits