Today I learned in my government class how the government finances the economy. The money comes from the "Taxes". Congress uses taxing powers to finance the government as well as for non revenue purposes. The Constitutional limitations are as follow:
1. may be levied only for public proposes
2. export taxes are prohibited
3. direct taxes must be equally apportioned among the states according to population
4. indirect taxes must be levied at the same rate through tout the country
I also learned the kinds of taxes, which are: Federal Income Tax and it is levied on both corporation and individuals. It varies depending on amount the person receives. Social Insurance Taxes are paid by employees and employers, who finance social security. Medicare and unemployment compensation. Excise Taxes are taxes on the manufacture sale or consumption of goods or services. They are passed to consumers by the producers. Estate Taxes is a tax on the estate of one who dies.
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