How income taxes work

April 15 is usually considered Tax Day, but on Friday, March 20, President Trump postponed the due date three months, to give Americans time to get their taxes done, effectively moving the deadline to July 15.

So what are income taxes? They are fees levied by a government directly on income, especially an annual tax on personal income. https://blog.caonweb.com/ says “The government imposes on income generated by businesses and individuals.”

Not everyone has to pay the tax, though, and those who do don’t have to pay the same amount. It all depends on how much income a person makes each year.

Taxing working people for the money that they earned was an idea first introduced in America in 1862 to help pay for the Civil War. Some states within the United States don’t have state level income taxes because they have other ways to raise money. Alaska, for instance, makes its income on the oil that is found there and Nevada is a very popular tourist attraction.

A New York Times article in 2016 said, “Pollsters have been asking Americans whether “it is every American’s civic duty to pay their fair share of taxes.” Every year, about nine in 10 Americans agree with that sentiment. In 2009, 3 percent of respondents disagreed.”

Taxes are important because they raise the revenue of major business in countries. They also help in government financing and economic growth, allowing the government to do experiments that require a lot of money. Taxes are a big source of income, especially in places like America and Sweden, but not everyone relies on income taxes at the federal level. The Bahamas, Morocco, The United Arab Emirates, and Bermuda are some countries that don’t have an income tax.