What Are Taxes? Knowing Our Taxes

Taxes, along with death, as they say, are the onlytaxes such as those on cigarettes and alcoholic
certain things in life. It may seem unpleasant as youbeverages.
have to give to the state a portion of what you have- Income Taxes. The growth of the US economy may
earned through hours of hard work. But unpleasant asbe answered by this solitary variety of tax. Income
it may be, this is the backbone of everything we havetaxes in the US are the main source of income for the
around us: the roads, the hospitals, the schools, policefederal government. Most of these are on salaries,
and national defense, and health services, amongstalthough a portion comes from dividends, rents and
others. Just about everything around us is taxed: whatcapital gains.
we eat, what we buy, how much we earn, or the- Property taxes. These are taxes paid for the simple
properties we own. So what are taxes?fact of owning a real property such as land and house.
Different Types of TaxesYou are obliged to pay property taxes as long as you
As an attempt to answer the question, "what areown real properties. It is an important US tax that is
taxes?" the following classification of taxes levied inbased on wealth.
the U.S. may be helpful:- Capital gains taxes. These are taxes paid for the
- Excise tax. Excise tax is a form of "special tax." It isincome you gained from selling properties.
levied only on a specific commodity, particularly on- Federal taxes. Federal taxes are a generic name
"luxury items" that poor families cannot afford. Theapplied to taxed levied by the federal government. This
federal government imposes a number of exciseincludes income taxes and property taxes.