why do we need to pay taxes
Every around April 15, you'll hear adults of all ages groan about Бtax day. " That's because
and state tax forms are due around that time. But have you ever wondered why you have to pay taxes? In the United States, we have governments at the local, state and national ( ) levels. These governments have various parts to them, including legislators (who make laws), executives (who enforce laws), and many others. The money these government workers receive to do their jobs comes from taxes. Taxes take many forms, too. When you work at a to make, you pay taxes. Depending on how much money you make, a certain (part) of the money you make is (kept out of your paycheck and sent to the government). When you buy things at a store, you also usually pay sales tax, which is a of the cost of the item charged by the store. If you own, you also pay taxes on the value of your. Paying your taxes is considered a, although doing so is also a requirement of the law. If you do not pay your taxes, the government agency that oversees taxes Б the Internal Service or IRS Б will require you to pay your taxes or else face penalties, such as fines or going to jail.
The money you pay in taxes goes to many places. In addition to paying the salaries of government workers, your tax dollars also help to support common resources, such as and. Tax money helps to ensure the you travel on are safe and well-maintained. Taxes fund public libraries and parks. Taxes are also used to fund many types of government programs that help the poor and less, as well as many schools! Each when Бtax day" rolls around, adults of all ages must report their to the IRS, using special tax forms. There are many, many laws that set forth complicated rules about how much tax is owed and what kinds of special expenses can be used (Бwritten off") to lower the amount of taxes you need to pay. For the average worker, tax money has been from paychecks throughout the. On Бtax day," each worker reports his or her and expenses to the IRS. Employers also report to the IRS how much they paid each worker.
The IRS compares all these numbers to make sure that each person pays the correct amount of taxes. If you haven't had enough tax money from your checks throughout the to cover the amount of tax you owe, you will have to send more money (Бpay in") to the government. If, however, too much tax money was from your paychecks, you will receive a check (get a Б ") from the government. Around the middle of spring youБll hear the moans and groans of distressed adults complaining about income taxes. Sure, we all know that itБs legally required, but do we really know why a substantial chunk of our income is being handed over to the government? Regardless of whether we give a sigh of approval or whether we think it is totally absurd, understanding the true purpose of taxation is necessary for all taxpayers. Where does your money go? LetБs find out. In the smallest of nutshells, taxes are paid because the municipal, state, and national governments implement tax laws.
TaxpayersБ money pays for government services of all kinds. These governments are comprised of a number of parts: the legislators (those who make laws), executives (those who enforce laws), judges (those who decipher laws), and many others. The money received from taxes pays individuals who work for the government. Although a legal requirement, paying taxes is also considered a civic duty. If you neglect to pay, the mediating body that oversees taxes (the Internal Revenue Service) will require that you do so, otherwise you might face penalties such as large fines or jail time. Taxes can be found in a number of forms. Income tax is the amount you pay for working at a job. Depending on your income, a percentage of that money is withheld (removed from your paycheck and sent to the government). When you purchase items at a store, a sales tax is typically added to the price. Sales tax is a percentage of the cost of the good charged at the store. Owning property also requires you to pay taxes on the value of your property.
The federal government collected $3. 27 trillion in taxes in 2016. HereБs a quick glance at types of taxes paid in 2016 as percentages: Excise Taxes, Tariffs, Estate Taxes, and Earning from the Federal ReserveБs holdings: 8% States government collected almost $1. 7 trillion in 2013: Amount allocated from taxes collected by Federal Government: 31. 3% Sales Taxes: 23. 4% Universities, Public Hospitals, and Toll Roads: 18. 5% Income Taxes: 18. 4% Municipal governments (cities, school districts, and counties) collected $1. 5 trillion in 2013: Property Taxes: 29. 7% Water, Sewage, Parking Meters: 22. 8% The money we pay fund many services. In addition to paying government workers, your tax dollars also help to support police and firefighters. Tax money facilitates the safety and maintenance of the roads you travel on. Libraries, parks, and many other public areas are paid for by taxes. Additionally, tax dollars go towards many government programs that help to support schools and the poor.
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