Introduction
There is a saying that goes, "There are only two things certain in life, death and taxes." This has become ever more true as we see and realize taxes affect almost everything we do and every decision we make. Whether or not we decide to buy something, such as a car or television, is affected by how much the taxes will be and whether or not we can afford them and are willing to pay them. Now realizing how tax is important, it may be best to see what kind of taxes there are and which ones affect us most.
Sales Tax
Every time we go to the store we see how tax is added to an item. If the purchase is a small one it may only be some change or a few dollars, but if it is a large one the tax could equal hundreds or thousands of dollars. The first set of general sales tax was seen in the 1930s. Over the years the general sales tax is seen in almost every state.
There are some items that are exempt from sales tax. One example is goods that are purchased on a military base by military personnel. If you go to one of the stores and are a member of the armed services, you will be exempt from paying taxes on items such as groceries.
When buying items from a store the sales tax is not added to the price of the item until it is rung up on the register. This means that the price you see is actually not the full price until taxes added in.
Income and Other Taxes
Another method for how tax is collected is through income tax. Income tax is the deducted every time you are paid by your employer. This helps to pay for government services and is required of all people making money within the United States. Even if someone is not on the payroll of an employer they are still required to file taxes and claim all income that they made over the year. Failure to do so could result in large fines or even criminal prosecution.
There are also a host of other ways how tax is collected. Even if you own your home outright you are still going to have to pay property taxes. These taxes vary from state to state and town to town, with some taxes being very high and others very low. This shows how taxes can even affect where you choose to live or whether or not you decide to stay in an area.
Tips and comments
This article has shown how tax has an effect on many different aspects of your everyday life. Some people try to avoid paying their taxes in a variety of ways. They sometimes are able to successfully evade taxes, but more often than not archived by the IRS and required to pay the money that they owe. The IRS has the ability to garnish wages or keep tax returns so that you don't ever see the money. This shows that it is simply better to pay your taxes so that you can avoid financial ruin later in life.
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