Schools, roads, parks, hospitals, and other public works and services rely on you and your neighbors, businesses, organizations, and estates to pay taxes that will help fund their budgets. Understanding how taxation works can give you a big picture idea about the ways your money gets taxed and empower you to take greater control of your finances.
The Constitution allows only two types of taxes to be levied inside our borders. If you ask the IRS what type of tax this is, you will almost NEVER get an answer. Why? Because the type of tax is incredibly important and the IRS knows this. You should know it, too, because the type of tax limits who and what can be taxed and how it can be collected.Schools, roads, parks, hospitals, and other public works and services rely on you and your neighbors, businesses, organizations, and estates to pay taxes that will help fund their budgets. Understanding how taxation works can give you a big picture idea about the ways your money gets taxed and empower you to take greater control of your finances.
The Constitution allows only two types of taxes to be levied inside our borders. If you ask the IRS what type of tax this is, you will almost NEVER get an answer. Why? Because the type of tax is incredibly important and the IRS knows this. You should know it, too, because the type of tax limits who and what can be taxed and how it can be collected.