Taxation and Spending

Taxation and Spending - Taxation and Spending

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Taxation and Spending Most people want the government to do something for them, whether it's agricultural price supports,  veterans' benefits, or Medicare. None of these things are free, and the government taxes its citizens  to raise the money to pay for the programs. Until 1913, the revenue of the federal government came  mainly from protective  tariffs,  which are taxes on goods imported into the country, and from the sale  of public lands. But the tariff policy caused high prices, and the federal graduated income tax was  instituted through the Sixteenth Amendment to make up for receipts lost when goods were too  expensive to purchase.  Types of taxes Many policy analysts believe that one purpose of government is to redistribute wealth. The terms  used to describe methods of taxation reflect these values. Taxes that place a heavier burden on the  wealthy are called 
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This note was uploaded on 11/20/2011 for the course POSI 1310 taught by Professor Arnold during the Spring '08 term at Texas State.

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