Wednesday, May 9, 2007

Taxes- How Does The Government Get Money?

There are three types of taxes there are federal government taxes, state government taxes, and local government taxes. Government gets it's taxes by deducting it from your check. That is why many people prefer working of the books because they get paid cash and nothing is eported, therefore no tax gets deducted. For example you are working legally if your earn $1,000 with taxes, but after deductions you end up getting like $700. However, if you work of the books (cash) you get the $1000 without any deduction. The advantage of working legally is that you report taxes you can live as retired and when you work of the the books you can't.The government deductes your taxes by taking it away from the pay check.One federal tax is the IRS. The state taxes is when you own a property or business you have to file taxes for that and pay your taxes for that property. Taxes charged on clothing are a state tax.

No comments: