2007-12-13 04:08:58 · 6 answers · asked by Ryan M 1 in Business & Finance ➔ Taxes ➔ United States
You are also taxed when you sell (capital gains tax), when you die (estate tax), and when you give (gift tax) and when you own land (property tax).
Gotta love it.
2007-12-13 05:10:26 · answer #1 · answered by Flyer 4 · 1⤊ 0⤋
Because all the different types of taxes mentioned by others help spread the total tax burden around. Some people are in situations such that they pay very little of certain types of taxes, but get hit by others.
Also, if one of these types of tax were eliminated, some of the others would have to be increased accordingly. For example, NH has no sales tax and almost no income tax, but they have very high real estate tax.
2007-12-13 13:36:34 · answer #2 · answered by r_kav 4 · 0⤊ 0⤋
Because... it is (almost always) not the money that is taxed, it the transfer of money that is taxed. The type of tax depends on the type of transfer: income, sales, inheritance, death, capital gains, and there are more.
When money is transferred from your employer to you, that is a taxable event.
When you transfer money to a merchant to pay for goods or services, that is a taxable event.
2007-12-14 06:24:50 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
Income tax and sales tax are different taxes, and used for different purposes.
2007-12-13 20:08:41 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
The universal answer: Because. You probably heard it from your mother many times. Now you understand what it really means.
2007-12-13 13:25:23 · answer #5 · answered by Bostonian In MO 7 · 2⤊ 0⤋
The reason US citizens are taxed so much is to pay for all the needs of the illegal aliens.
2007-12-13 12:16:58 · answer #6 · answered by a TRUE American 2 · 1⤊ 4⤋