Throughout history there have been many unusual
taxes levied on such things as hats, beds, baths, marriages, and funerals. At
one time England levied a tax on sunlight by collection from every household
with six or more windows. And according to legend, there was a Turkish ruler who
collected a tax each time he dined with one of his subjects. Why To pay for the
wear and tear on his teeth! Different kinds of taxes help to
spread the tax burden. Anyone who pays a tax is said to "bear the burden" of the
tax. The burden of a tax may fall more heavily on some persons than on others.
That is why the three levels of government in this country use several kinds of
taxes. This spreads the burden of taxes among more people. From the standpoint
of their use, the most important taxes are income taxes, property taxes, sales
taxes, and estate, inheritance, and gift taxes. Some are used by only one level
of government; others by or even all three levels. Together these different
taxes make up what is called our tax system. Income taxes are
the main source of federal revenues. The federal government gets more than
three-fourths of its revenue from income taxes. As its name indicated, an income
tax is a tax on earnings. Both individuals and business corporations pay a
federal income tax. The oldest tax in the United States today
is the property tax. It provides most of the income for local governments. It
provides at least a part of the income for all but a few states. It is not used
by the federal government. A sales tax is a tax levied on
purchases. Most people living in the United States know about sales taxes since
they are used in all but four states. Actually there are several kinds of sales
taxes, but only three of them are important. They are general sales taxes,
excise taxes, and import taxes. Other three closely related
taxes are estate, inheritance, and gift taxes. Everything a person owns,
including both real and personal property, makes up his or her estate. When
someone dies, ownership of his or her property or estate passes on to one or
more individuals or organizations. Before the property is transferred, however,
it is subject to an estate tax if its value exceeds a certain amount. The government levies different kinds of taxes so that ______.
A. the rich have to pay more and the poor less.
B. a wider range of taxpayers can be included.
C. each of three levels of government could get tax money.
D. the burden of taxes falls evenly on everybody.