Government Benefit Program Funding

James Little

Income Tax

Income tax is a type of tax paid to your federal, local, and municipal governments. These taxes are collected by the government for the purposes of paying for schools, roads, salaries for teachers, etc.

Payroll Taxes

Your payroll taxes are paid to your federal government. The reason you pay this tax is to pay for Social Security and Medicare. If you do not know, Medicare is a form of health care and is generally given to people who are at are above the age of 65. Social Security is a system of government who gives assistance for people who make little to no income.

Property Taxes

Your property taxes are usually paid to your municipal or state government. These taxes are based on things you own and are based on the value of your home, car, or any area of land you currently own. There are also some jurisdictions who pay tax on the same property.

Sales Taxes

Sales taxes are taken up by the state or city government, they base the tax off the retail price of an item. The process starts by your retailer collecting the money from your taxes. They then send the tax you just paid to the city or state government.

Excise taxes

Excise taxes are paid to your federal or state government. These taxes are used to pay for non-essential goods. Examples of non-essential goods are gasoline for your vehicle, communication for your phone, and any form of environmental taxes.
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Citations

"Income Tax | Cleveland Ohio | Gogul & Associates | Estate Planning."Income Tax | Cleveland Ohio | Gogul & Associates | Estate Planning. N.p., n.d. Web. 06 Apr. 2016. <http://gogulandassociates.com/tax.shtml>.


Schenk, Robert. "Efficiency of an Excise Tax (I)." Excise Tax. N.p., n.d. Web. 06 Apr. 2016. <http://ingrimayne.com/econ/government/ExciseTax.html>.


Madonna, G. Terry, and Michael L. Young. "Politically Uncorrected: RIP: The School Property Tax." PoliticsPA Politically Uncorrected RIP The School Property Tax Comments. N.p., n.d. Web. 06 Apr. 2016. <http://www.politicspa.com/politically-uncorrected-rip-the-school-property-tax/64671/>.