The Truth About Taxes

Have you ever wondered why we pay taxes? You’ve always known that you HAVE to, but have you ever actually wondered why? It’s pretty simple, really.   

As annoying as they may be, we pay taxes to help pay for the government services that we and other people receive. And, as you well know, we don’t have a choice in the matter. It’s the law.

Something else to know about taxes is that they are split into different types. First, you have federal taxes, which are made up of personal income taxes, payroll taxes, corporate taxes, and excise taxes and other types of taxes from the Federal Reserve.

Next comes state taxes, which come from the federal government, sales taxes, payments to state organizations, income taxes, state license fees, and corporate income taxes, to name a few.

Finally, there are local taxes which are collected from state government, federal government, property taxes, sales taxes, and fees for water and other amenities.

While that might seem like an awful lot of taxes and an awful lot of money you have to pay, your tax dollars are put to good use. Here are just a few of the things your tax dollars help cover:

l  Payments to senior citizens for Social Security

l  Defense

l  Medicare

l  Medicaid

l  Interest on the national debt

l  Government agencies, such as education, NASA, and more

As you can see, your tax dollars are going toward good things, even though it can be hard to see the good things when you’re worried about paying your tax bill.

Fortunately, you can still help to do good but also lower your taxes by taking advantage of the various exemptions available. There are also many other ways to help lower taxes, and the right accountant can help you with this. The bottom line is to do your part but also to save where you can with the right help.