Q:

Why does the government need to collect taxes?

A:

Quick Answer

Tax money is collected by the government to fund government services or goods. The tax budget is divided into both mandatory and discretionary spending, depending on how it is allocated each year.

Continue Reading
Why does the government need to collect taxes?
Credit: Nick M Do Photographer's Choice RF Getty Images

Full Answer

Taxation is a controversial topic and often one of the main topics highlighted in a political platform. While some taxation is needed for basic maintenance of a country's infrastructure, government operation and employees, such as police and firefighters, many citizens are wary of wasted money collected from taxes. The tax budget in the United States goes towards military spending, welfare, medical services and Social Security. The optimal level of taxes can change in time depending on economic stresses on a country.

Learn more about The Constitution

Related Questions

  • Q:

    Why does the government impose excise taxes?

    A:

    The government imposes excise taxes, just like any other tax, to raise money for the government and its programs and services. Excise taxes are imposed on specific goods such as gasoline and activities such as wagering and highway usage, according to the Internal Revenue Service. The taxes are typically included in the price of the product.

    Full Answer >
    Filed Under:
  • Q:

    What are some examples of tax deductible items?

    A:

    Tax deductible items include home mortgage interest, real estate taxes and charitable contributions of cash and goods, according to TurboTax. Individuals can also deduct for either their state income taxes or their state and local sales taxes. Taxpayers can also deduct costs they incur when they volunteer for nonprofit organizations. For example, purchasing postage for invitations to a fundraising event is a tax deductible expense.

    Full Answer >
    Filed Under:
  • Q:

    What are tax stamps?

    A:

    Tax stamps are stamps that the government uses to collect fees and taxes. They are small pieces of security papers applied to a product. A tax stamp can also be referred to as a fiscal stamp or a revenue stamp. Revenue stamps appear on certain products, such as cigarettes, documents, playing cards, alcoholic drinks, firearm registrations and hunting licenses.

    Full Answer >
    Filed Under:
  • Q:

    What is a federal excise tax?

    A:

    Federal excise taxes are taxes imposed by the federal government on specific goods and services that are often included in the price of the product, according to the Internal Revenue Service. Excise taxes are commonly applied to products such as gas, cigarettes and alcohol.

    Full Answer >
    Filed Under:

Explore