tax primer--part one

Taxation--it's complicated.
     Our federal government, in the United States, collects income taxes. When you work all week, and get your paycheck on Friday, income taxes will have been deducted from it. The federal government of the United States also collects taxes on things that are imported into the United States from other countries. Another form of federal taxation is the excise tax--a tax added into something you buy, before it ever gets to the store--like gasoline, alcohol, and tobacco. The prices of all of these are partly tax paid to the federal government.
     Each of the fifty United States has a government--and each of these collects taxes. The most common form of state tax is the sales tax--a percentage added to something you buy. In some states this is added to everything sold in the state. Here on the east coast "luxury" sales taxes are more common. Items that are considered necessities--like groceries and clothing-- are not taxed when sold. Everything else (in Pennsylvania, for example) has 6% (six percent) added to the sale price--that's six cents for every dollar. States may also collect a state income tax, as my home state of Pennsylvania does. You may find this deducted from your paycheck along with the federal income tax.
     Local governments also collect taxes. A local government is the government of a city, town, borough, township, or village. Local taxes are usually in the form of property taxes. Anyone who owns a home or business pays a certain amount of tax each year to the local government. If you pay rent, the person renting to you pays property taxes. Some local governments collect other taxes. Here in Philadelphia we have a city wage tax--like a third income tax, also deducted from our paychecks. We also have an added two percent sales tax--instead of the six percent tax in the rest of Pennsylvania, Philadelphia has an eight per cent tax. The extra two cents goes to the city of Philadelphia.
     Still looking at your paycheck?  Social Security is a separate tax, collected from your wages or salary in the form of another deduction each week.
     What is left of your paycheck is yours to spend.