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taxes
a levied fee charges by the government on a product, income, or activity
any government income
*benjamin franklin: “nothing is certain but death and taxes”
income taxes
paid out by anyone who earns an income by any means
goes to the federal government
every paycheck, the government gets paid
those with less income pay less than those with more income (tax breaks are given)
*9 states do not have income taxes — washington, south dakota, nebraska, wyoming, alaska, texas, florida, tennessee, new hampshire
have other taxes: somebody needs to get paid!
property taxes
paid by anyone who owns property such as land, a home, or commercial real estate
goes to the state and local governments
(NJ —> local gets property taxes for funding schools, police, etc)
sale taxes
taxes on sale goods or items
goes to the state government
how state officials are paid
(NJ’s number 1 source of revenue —> 6.625% *no taxes on clothing and baby needs*)
inheritance/estate tax
only type of tax that can happen due to a death
only paid if they are left a lot of money —> even companies
goes to federal government (when someone dies, federal government gets money)
excise taxes
paid when purchases are made on a specific good considered “sinful”
extra sales tax
(NJ — cigarettes, gas, cell phone service plans)
(all states — alcohol)
goes to the federal government (why they wanted to make marijuana illegal)
federal government gets all…
income taxes
excise taxes
inheritance/estate taxes
state governments gets…
all sales takes
some property taxes (if no sales tax in the state)
*depends on state
local governments get…
some property tax
*depends on state
tax system in america
progressive tax system
takes larger proportion of income from those with high-income than those with low-income (tax-brackets)
we do not have a flax tax system, where the same tax rate applies to all levels of income
Note
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