How does the government tax different income levels in the USA?

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In summary, governments impose taxes in order to generate revenue. They do this by taxing different channels, levels of society, and incomes. Taxes prevent revolutions from happening, and help solve various problems.
  • #1
jackson6612
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I was wondering why the governments impose so much tax on us, they tax us through every channel available from the food we eat to the very roads we travel on. Even that is not enough for them, they also tax our remaining income. Why do they impose so much tax?

Other side question is about how the government such as in USA tax different layers of their society, that is, poor, middle class and rich. I'm sure they don't tax everyone at the same rate.
 
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  • #2
jackson6612 said:
I was wondering why the governments impose so much tax on us, they tax us through every channel available from the food we eat to the very roads we travel on. Even that is not enough for them, they also tax our remaining income. Why do they impose so much tax?

Other side question is about how the government such as in USA tax different layers of their society, that is, poor, middle class and rich. I'm sure they don't tax everyone at the same rate.
I'll bet you could do some research on this and find out a lot.
 
  • #3
Thanks for the advice, Evo. But it would be very much helpful if someone could answer it in a few lines. I'm an English learner, so reading articles takes a lot of time, have to use dictionary several times. I hope you would understand. I also understand that everyone's time is precious and valuable and I respect it, and people who help me I owe them a lot.
Best wishes.
 
  • #4
jackson6612 said:
I was wondering why the governments impose so much tax on us, they tax us through every channel available from the food we eat to the very roads we travel on. Even that is not enough for them, they also tax our remaining income. Why do they impose so much tax?
They tax everyone because half the country is owned by the government. Governments own most of the roads, bus systems, train systems, coastal regions used for shipping, land used for airports, parts of the power grid, parts of the telephone grid, the water and sewage systems, education, the military, police, and in some countries they control health care.

The reason they put taxes on everything instead of just having a simplified tax is because it prevents a revolution from happening. Most people really don't have a clue how much tax they pay. An example of this is the hidden tax on alcohol. Politicians were talking about ethanol fuel for your car costing $5 per gallon, so why is store vodka like 100x that price? Taxes. It's all taxes. It doesn't say on the bill that 99% of that vodka's price is tax, but it is. If you don't know you're getting taxed like crazy, you won't start a revolution :wink:
 
  • #5
jackson6612 said:
...But it would be very much helpful if someone could answer it in a few lines. I'm an English learner, so reading articles takes a lot of time, have to use dictionary several times. I hope you would understand. I also understand that everyone's time is precious and valuable and I respect it, and people who help me I owe them a lot.
Best wishes.

But tax is not English related... You're saying there is no information on tax in your own language.

But in a single line: Tax pays for all the problems that are solved without you ever having to know they exist. (hopefully!)
 
  • #6
Dr Lots-o'watts said:
But tax is not English related... You're saying there is no information on tax in your own language.

But in a single line: Tax pays for all the problems that are solved without you ever having to know they exist. (hopefully!)

And the real argument comes over whether they were problems in the first place or if they actually get solved :biggrin:
 
  • #7
ShawnD said:
They tax everyone because half the country is owned by the government. Governments own most of the roads, bus systems, train systems, coastal regions used for shipping, land used for airports, parts of the power grid, parts of the telephone grid, the water and sewage systems, education, the military, police, and in some countries they control health care.

The reason they put taxes on everything instead of just having a simplified tax is because it prevents a revolution from happening. Most people really don't have a clue how much tax they pay. An example of this is the hidden tax on alcohol. Politicians were talking about ethanol fuel for your car costing $5 per gallon, so why is store vodka like 100x that price? Taxes. It's all taxes. It doesn't say on the bill that 99% of that vodka's price is tax, but it is. If you don't know you're getting taxed like crazy, you won't start a revolution :wink:

Yours is a much better answer than I would have given, ShawnD. Thank you.

I'd have started my answer with another question, mocking Jackson's rhetorical introduction; "I was wondering why the governments impose so little tax on us..."

Though we have not addressed the second question;


jackson6612 said:
Other side question is about how the government such as in USA tax different layers of their society, that is, poor, middle class and rich. I'm sure they don't tax everyone at the same rate.

Jackson,

The poor here have what I would call a reverse tax. Because they are so poor, and would resort to violence to feed their young, we give them money.

The middle class pays a tax, based roughly on their income.

The rich, depending on your definition of rich, pay a bit less then the middle class. This is due to the fact that we do not want to scare them away, and want them to keep their capitol, aka dollars, in the system.

Was that few enough lines? :wink:
 

FAQ: How does the government tax different income levels in the USA?

Why do we have to pay taxes?

Taxes are a necessary part of our society as they fund the services and programs that benefit our communities, such as education, healthcare, and infrastructure. Without taxes, it would be difficult for governments to provide these services.

Where does our tax money go?

Your tax money goes towards funding various government programs and services, such as national defense, social security, and healthcare. It also goes towards paying government employees and maintaining public infrastructure.

Why does the amount of taxes we pay change?

The amount of taxes individuals and businesses pay can change due to a variety of factors, including changes in tax laws, economic conditions, and government spending. Additionally, as individuals' income and financial situations change, so may the amount of taxes they owe.

How is the amount of taxes we owe determined?

The amount of taxes an individual or business owes is determined by their taxable income, which is the amount of income subject to taxation after deductions and credits. The tax rate also plays a role, as individuals and businesses are taxed at different rates depending on their income level and type of income.

Can we reduce the amount of taxes we owe?

There are various ways to reduce the amount of taxes an individual or business owes, such as taking advantage of deductions and credits, investing in tax-deferred accounts, and making charitable donations. It's important to consult with a tax professional or do thorough research to ensure these methods are used correctly and legally.

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