We pay Federal & State taxes. Why/how is it legal for local or state gov. to tax our goods as well?

Question

If we pay Federal & State taxes, why is it not considered double taxation to have our goods taxed? We pay multiple taxes for Gas, cigarettes or when we shop. From the money you earn you are taxed. Then purchases are taxed. By the time you add up the taxes it can be a large percentage. Why/How is this legal? Have kids who want to know.

We visit other states & they do not tax the same way. The kids want to understand why it is ok for IL. to tax wages, parking at events, fast food, groceries, gas & more. If we shop in one town it's 7% but in another town it's 10.75% & so forth. They don't understand how this is legal & why is it ok for them to just raise taxes because the need for money increases. My son asked why do we have to pay their bills? Please set your answer so a teenager can understand.

Answer 1

Each state has a constitution and in there will be a provision for taxing. That of course is what makes it legal.

Answer 2

The tax structure varies from state to state and city to city within a state. I currently live in a state with no state income tax but very high property and sales taxes. In local and state elections, voters get a chance to vote on various new taxes. Different taxes go to different parts of the government and some are very specifically targeted. Recently my city voted yes to an increase in the sales tax of .25% for ambulance/paramedic services. It is fair because the citizens have a chance to vote directly on some taxes and to elect representatives who vote on other taxes.

Answer 3

You aren't being taxed multiple times for the same thing. One time it is income. Another it is sales. Another is a special gas or cigarette tax.

Thus, no double taxation. (Though some are examining whether taxing income and then use of income is actually not double taxation. It is being looked into by some researchers.)

Answer 4

Oh there's plenty of double, triple, even quadruple taxation on a single item. There used to be limits on federal taxation, but they went out the window in 1913 'for the good of the people.'

Try this:
Earn money, pay taxes
Buy bonds to invest
Sell bonds, pay taxes on interest
Buy a car, pay taxes on the car
Buy gas to get out of the dealership, pay tax on the gas

Taxed four times to get off the lot!

Answer 5

You are taxed by representitives of the people. It is taxation WITH representation and as a result is legal. Next time you need a cop, drive down the road, go to school, etc.. remember it is ALL paid for by your taxes. Nothing free in this world. A good lesson for children.

Answer 6

Different governments can tax the same or different items. If you don't want to pay state sales tax move to Oregon. City property tax, drivers licenses, license plates, fees for filing papers, fees for home inspections, all these are taxes. All may be for essential services but taxes nevertheless. Most are voted on in ballot referenda.

Answer 7

netjr is partly correct. The rest of the story is that of the small fraction paying taxes an even smaller number pay most of them. What will eventually happen will when it gets down to about 10% paying all the taxes, they will just leave and the government will be bankrupt the next day.

Answer 8

it's legal but when people talk about taxes they fail to remember the state and local taxes that we pay..in my state the sales tax is nearly 10% because the state and the county have a sales tax..that's alot

Answer 9

Try to get local, county or state tax laws overturned in court. If you had millions of dollars and tremendous lawyers, you might succeed. But the trial judges get their wages from your tax dollars. How do you think they would decide?

Answer 10

Income taxes are different from taxes on commodities. There is no double taxation because the subject of taxes are different.