This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Taxes are an integral part of your life as an American. Each April you spend countless hours pouring over records and receipts, or paying an accountant to do this, in preparation for income taxes. Similarly, in most states whenever you purchase something, like clothing or a car, you are required to pay sales tax. These are just two of the most common taxes faced by the American people. Others include luxury tax, inheritance tax, and corporate income tax. What is all of this tax money used for? Why does the amount of tax change from place to place and from year to year? Tax revenues are used to support government spending. Health care, defense, social security, and politicians' salaries are all government expenses. From an economic standpoint, it is reasonable to think of the American government as one large company. The total amount of government spending is dictated by the governmental budget, just...
View Full Document
- Fall '10