Introduction to Taxes

Since the beginning of history, most countries have had some form of taxes. Taxes are money you must pay to the government. The government collects this money so that they can use it to improve our society.

Why do we pay taxes?

It’s important to know why we pay taxes. The purpose is for the government to spend the money to improve our security and quality of life. One way is by building and improving schools, parks, fire departments, and roads. The government also votes to spend money on special projects in the community, like baseball stadiums, museums, and solar energy production.

Who takes the taxes?

Taxes are collected and spent at different levels. For example, taxes that are collected locally are used by people in government on the local level (like in your city). In the United States, we pay local, state, and federal taxes.  

The different types of taxes.

There are also many types of taxes, including income, property, and sales taxes. Income taxes are due based on the money you earn from working. Property taxes are due when owning a house. Sales taxes are due whenever you buy things at the store, excluding some food. Finally, certain types of taxes may only be collected depending on where you live in the country. 

Learning about taxes is important, so you can be smart with your money, and not be caught off guard when tax time comes.