Taxes Essay Research Paper Running head Taxes — страница 2

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program that have been put in place with the idea to help the public in time of need. Government grants for education, job retraining programs, and small business loans are some other types of program that have been created to help support the growth of the population. Taxes 5 Education is another important service that is provided by local and federal governments. The responsibility for primary education is on city and county governments. Secondary education, such as colleges and universities, fall on the state government; however, the federal government helps with primary, secondary, and vocational education by providing grants that are an important part of the success of the educational system in this country. Types of taxes Taxes have been around since the beginning of

organized society. They come in various forms. Most common are income taxes both federal and local. These taxes are assessed on the amount of income a person earns. Other taxes come in the form of user taxes. These taxes are imposed on the people that are using the goods being taxed for example gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major revenues for local and city governments. Furthering the burden of taxation there are taxes that are attached to such bills as utility bills and rental expenses. The following information is an overview of what has been happening to tax revenues in city and federal government. Property taxes for the most part have sky rocketed across the country. Dearborn (1993) reported that, in the period from 1980 to

1990, local property taxes increased nationally by an impressive 128%, with 32 states experiencing increases over 100%. Property taxes make up as much as 92% of city or county revenue. School and educational cost can take up as much as 97.5% of a county’s revenue. Taxes 6 Out of 41 school districts surveyed, only 3 depended entirely on property taxes as a local tax source. Between the period from 1984 to 1990, the city of Boston had the highest increase in assessment ratio of property values of 158% and, while the city reduced the tax rate by 51%, it still yielded a net increase of 56% more in tax revenues from property taxes. Percentage change in local property tax revenue Percent change Percent change 1980-1990 1990-1991 RI 107.3% 9.4% MA 46.9% 6.4% NH 212.0% 16.7% VT 140.6%

11.3% CA 172.1% 8.9% NY 109.4% 8.0% NC 133.8% 7.6% Taxes 7 In a recent report on property tax rip-offs, Razzi (1995) gave tips on how to reduce the amount of property tax that a person pays. According to the National Taxpayers Union, only 5% to 10% of homeowners appealed their assessments, but more than half of those who do appeal receive some type of reduction in their assessment. Razzi stated that Dale Cheema has saved $4,300 in five years by challenging the assessments on his California home and rental properties. (p.4) Sales tax makes up for a big chunk of revenue in states that are looking to place levies on users. Fortune magazine reported on the extremes of state taxes. If you like to pay taxes, be sure to buy gas in Connecticut and cigarettes in Michigan, and shop in

Rhode Island or Mississippi. Taxes 8 Where has all the money gone? The government, both federal and county collects from millions to billions of dollars annually from taxpayers. The people who benefit the most are the people who get to collect from government programs that give benefits to qualified individuals. Such benefits could range from low income housing, college tuition grants, to tax exempt investments for investors who invest in government approved projects normally associated with other government aid to investors. The people who get ripped off are the people who never get to collect from any government give-a-ways. The people who get ripped off are the people who pay absurd amounts of taxes every year so that the government can support these programs. The American

government gives away billions of dollars to foreign countries that have no means of repaying such depts. and the government does so without ever asking the permission of the tax payers. After all the money belongs to the people who are paying the taxes more than anyone else. In a report from the Committee on Government Operations, the agency uncovered a multitude of fraud and waste in the federal government. It blamed most of it on lack of leadership and mismanagement. The report, (1993) stated, “the government’s blind eye invited a savings and loan disaster that will cost taxpayers $195 billion to $335 billion.”(p.1). “By all signs, the record on preventing government waste during the past 12 years is poor. The agency by agency assessments contained in this report