Thursday, May 10, 2007

Taxes - How does the Government get Money?

Explain the different types of taxes Americans pay. How does the federal government get money? How about the state government? And how do local (city) governments get money? Make a chart and track all of the different ways Americans are taxed. Hint - there is more than one!
The different types of taxes we pay are: Direct Taxes on income from work, Indirect taxes on income from work, Taxes on income from capital, Taxes on property, Corporate taxation and Taxes on goods and services. Check the chart on how we pay these taxes here or here <--click Open when new window appears The State Government, Federal Government and Local Goverment gets money by the taxes we pay. These taxes are called Direct Taxes that are taxes payable on income from work, taxes on income related to work (such as sickness benefits, pensions and parental benefits) and basic pension contributions.

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