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:
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Payments to senior citizens for Social Security
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Defense
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Medicare
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Medicaid
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Interest on the national debt
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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.