The Historyof Taxesin America

... tax payers to abide by the laws. All gasoline and diesel fuel that is purchased is taxed in cents-per-gallon. These tax rates vary from each state. Volunteer fire units and governmental units are exempt from paying fuel taxes. Also, gasoline taxes are refunded to farmer for the gasoline used in their farming operations. The motor fuel tax makes up a total of 3.90 collected compared to the 23.46 federal taxes collected, 18.01 sales tax, 25.52 in income taxes, and lottery is 2.46. Total collections in 1998 from automobile rental usage was 26,287,733 which increased by 4.4 from 1997. Inheritance tax is imposed on the transfer of property after the owners death. The beneficiary of the property must pay the tax. This is determined by a flat rate method or the graduated rate method. Most states impose this tax. Our economy is based on capitalism, or a free market. We can decide on how to invest or spend our money. This free market does not produce all services needed by society. Taxes are collected to pay for these services. Some examples are local or state police protection and a national defense system. Also, there are user fees which are collected by toll booths or entrance fees to national parks. In conclusion, there are many kinds of taxes in the United States. There is tax on income, consumption, property and wealth. Also, the federal income tax taxes people on their ability to pay. Along with this there is exemptions and deductions. Furthermore, inheritances, fuel, and corporations are also taxed.Some of the money collected from taxes funds public schools, state governments, health and welfare benefits. Taxes also pay for the construction of our highways and hospitals. As you can see, some of our income goes somewhere other than our bank accounts. http://www.revenue.state.il.uspublicationsannualreport1998economicover.htmwww.revenue.state.il.ustaxinformationotherproperty.htmlwww.revenue.state.il.ustaxinformationexcisegas.htmlwww.revenue.state.il.ustaxinformationincomeindividual.html