“Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” Benjamin Franklin, 1789. Certainly, taxes are a part of our lives. Taxes are legally imposed and collected in a variety of ways by our local, state, and federal governments. Since we all have to pay taxes, having a better understanding about them makes sense.
We expect our government to provide us with certain services like law enforcement, courts, infrastructure, military protection, food safety, a clean environment, and a host of other services. These services are paid for by taxes. Where you live, how much you spend, and how much you earn affect how much you pay in taxes. There several types of taxes that we pay. This chapter will explain income taxes, FICA, sales taxes and property taxes.