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Our free tax law facts section covers basic
taxation facts with regards to the different levels
of government that may levy taxes. Taxing
authority is available to municipalities, counties,
regional service entities such as school districts,
State governments and the federal government.
The federal government levies many taxes including
income tax, estate tax, import duty, excise taxes and
a myriad of other special taxes and fees. Income
tax on individuals, corporations and other entities is
the primary source of revenue for the U.S. Government.
States and local governments, on the other hand,
collect most of their taxes from a combination of real
property tax, personal property tax, sales tax and
income tax. In some places, residents may pay
income taxes to federal, state and city governments.
Concurrent with income taxes, the federal
government also collects FICA or social security taxes
and Medicare taxes. These taxes fund two of the
ever growing entitlement programs created by the U.S.
Congress. The social security system technically
is not an entitlement program since the original
intent was a for a forced retirement savings plan a
worker would fund over his or her lifetime.
Unfortunately, unscrupulous Congresses over the years
spent the money workers saved and today social
security payments for retired workers are funded by
the payments of those still working in a never ending
Congressional ponzi scheme.
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