Parents and Teachers: Support Ducksters by following us on Ducksters Facebook or Ducksters Twitter.
Ducksters Educational SiteDucksters Educational Site
History Biography Geography Science Games

History >> US Government

US Government

Taxes

In order for the government to run, it needs money. The government gets its money by taxing its citizens.

Why do we need Taxes?

Taxes pay for all sorts of government jobs and services. Federal taxes help pay for national things like the president, the Congress, federal judges, and the military. State taxes pay for roads and the governor. County and city taxes help pay for schools, fire trucks, and the police. Without taxes, the government couldn't run and the country would be in chaos.

Types of Taxes

There are all sorts of taxes that people and businesses have to pay. We've listed a few of them below.

Income Taxes

Income taxes are a percentage of the money someone makes on their job. In the United States, the more you make, the higher percentage you pay. There are different types of income tax including federal, state, and local income tax. Federal rates can be anywhere from 0% to 39.6% and state rates run from 0% to 13.3%. In some states people can pay over 52% of their income in income taxes alone.

Property Taxes

If you own property, like a house, then you probably have to pay property taxes. There is often a property tax from the county and the city. Property tax is usually a percentage of the current value of the house. If you own a $300,000 house and the tax is 3%, then each year you have to pay the government $6000 in taxes.

Sales Tax

Sales tax is placed on all retail sales in many areas. Sometimes items like food or clothing are exempt from sales tax. Every time you buy something at a store and they add on the "tax" at the end, that's the sales tax. Sales tax varies depending on where you live from 1% to 10%.

Social Security Tax

Another tax that comes out of a person's paycheck is social security tax. This tax is meant to help people when they retire. Once you get old enough you can start collecting a social security check. The current tax rate is 6.2% paid by the employee and 6.2% paid by the employer (if you have your own business you have to pay all 12.4%).

Medicare Tax

Medicare tax comes out of your paycheck, too. It pays to help people age 65 and over who are sick and need medical care. Medicare tax rates are 1.45% for the employee or 2.35% (if you make a lot of money).

Corporate Taxes

Businesses also have to pay all sorts of business taxes depending on how much profit they had.

Other Taxes

There are lots of other taxes such as tariffs on imports, gift taxes, estate taxes, and unemployment taxes.

More or Less Taxes

There is a constant argument in politics about whether taxes should be higher or lower. However, despite what politicians say, there really isn't one right answer.

Think about it. If taxes were 0, then of course the government would get no money and that wouldn't be good. However, what would happen if taxes were raised to 100%. How much money would the government get? It would get no money, because no one would want to work if the government took all their money. Therefore, there is some answer between 0% and 100% that is the best answer.

Interesting Facts about Taxes ** Any numbers are as of 2014. They are not official and should not be used for financial or tax planning.

Activities To learn more about the United States government:

Branches of Government
Executive Branch
President's Cabinet
US Presidents

Legislative Branch
House of Representatives
Senate
How Laws are Made

Judicial Branch
Landmark Cases
Serving on a Jury
Famous Supreme Court Justices
John Marshall
Thurgood Marshall
United States Constitution
The Constitution
Bill of Rights
Other Constitutional Amendments
First Amendment
Second Amendment
Third Amendment
Fourth Amendment
Fifth Amendment
Sixth Amendment
Seventh Amendment
Eighth Amendment
Ninth Amendment
Tenth Amendment
Thirteenth Amendment
Fourteenth Amendment
Fifteenth Amendment
Nineteenth Amendment
Overview
Democracy
Checks and Balances
Interest Groups
US Armed Forces
State and Local Governments
Becoming a Citizen
Civil Rights
Taxes
Glossary
Timeline

Elections
Voting in the United States
Two-Party System
Electoral College
Running for Office


Works Cited

History >> US Government





About Ducksters Privacy Policy   

Follow us on Ducksters Facebook or Ducksters Twitter

This site is a product of TSI (Technological Solutions, Inc.), Copyright 2017, All Rights Reserved. By using this site you agree to the Terms of Use.