Taxes - How Does The Government Get Money?

There are many ways for the government, both local and federal to make money, however the most important method is through tax. There are several types of tax: sales tax and income tax.
Income tax, which is designated by the federal government, is tax that is charged to individuals as well as corporate entites. This tax is levied from the idividual's source of income, such as thier wage. Some states also chrge income tax, but not all.

Sales tax is chraged at the point of purchase, or at the time an item is payed for. Sales tax is usually charged by the state. The tax rate for Queens, New York is 8.375% while the tax rate for Saratoga Springs is only 7%.

There is also a third form of tax - property tax. Property tax is a tax payed for the ownership of land. There are three categories that determine the value of a property and therefore the amount of tax that is to be payed: Land, Improvements to Land (immovable man made things), and Personalty (movable man made things). In America, property tax is handled at the county level.