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.
The government gets it's taxes by deducting in it from your check. That is why many people prefer working of the books because they deduct nothing from there. For example you are working legally if your earn 1,000 with taxes and everything you will probably take like 700 dollars. And if you work of the books you just get 1000 without any deduction. But working legally is better because when you report taxes you could retire and when you work of the the books you can't.
The government deductes your taxes by taking it away from pay check.
One federal tax is the IRS.
The state taxes is when you own a property or a store and you have to file taxes for that and they take away your money or you pay taxes for your property. And when they charge taxes on clothing that's a state tax. Because sometimes in other states they don't charge tax for that item.

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