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Sales tax

Our fourth type of taxes sales tax
You've all been introduced to this tax it's obviously a tax on items purchased in a retail store. It's a percentage added on. So for example if you bought a dollar item charge 6 percent sales tax it's now a dollar 0 6 6 6 percent of a dollar is 6 cents. Sales tax again changes by region and even by county. So it's paid by anyone who purchases an item.

I don't know if you know this but some states don't have sales tax and  again it helps fund specific expenses of state and local governments.

The last type of taxes excise tax. 
This is a tax charged on consumption items. What I mean by that I mean taxes on purchase of certain items such as gasoline. Hotel rooms airline tickets cigarettes alcohol and it's typically included within the price if you've ever paid gas paid for gas you'll realize that the amount that it says it is per gallon is the actual amount because the tax is already included in the per gallon cost. So it's paid by anyone who purchases those specific items and it changes by location for example. This isn't a great example but it works. The cigarette tax in Missouri is one of the cheapest in the nation's at like fifty five cents per pack whereas in California it's one of the more expensive taxes in the nation And it's like two or three dollars per pack. So it's definitely by location but the cost of this tax is already included in the purchasing cost of the item And again it helps fund the expenses of the state and local governments.


So one thing to think about is the gasoline tax for instance has funding go towards road repairs. So this is a type of tax that definitely makes sense where if you're if you're on the road more you're going to be needing more gasoline.

So if that means you're driving more and the roads are being deteriorated by your usage and said the more you're driving the more gas you use and the more that tax will go to help act to support the roads you're driving on. So that's a really great example of cause and effect of taxes not all taxes are like that of course. This one works in a good way.
So taxes are definitely a huge part of your income it's typically a third or 33 percent of your income. So taxes definitely play a role in both the amount you earn and the cost of what you're buying And typically that is not always thought of as the sway but it's one of the largest expenses for many people. It takes a chunk out of your paycheck but you know it's going towards a reason and a cause that you need to have in your life.


 Whether it's better roads better libraries supportive defense systems and a lot of people disagree on what taxes should be spent on of course. But it's something that will always be in your life.

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