Tax

tax (tăks) pronunciation
n.

1. A contribution for the support of a government required of persons, groups, or businesses within the domain of that government.
2. A fee or dues levied on the members of an organization to meet its expenses.
3. A burdensome or excessive demand; a strain.

tr.v., taxed, tax·ing, tax·es.

1. To place a tax on (income, property, or goods).
2. To exact a tax from.
3. Law. To assess (court costs, for example).
4. To make difficult or excessive demands upon: a boss who taxed everyone's patience.
5. To make a charge against; accuse: He was taxed with failure to appear on the day appointed.

Tax

Rate or sum of money assessed on a citizen's person, property, or activity for the support of government, levied upon assets or real property, upon income, or upon the sale or purchase of goods. Examples include Ad Valorem Tax, Excise Tax, Income Tax, Property Tax, Sales Tax, Estate Tax, school tax, and Use Tax.

The first US income tax was signed into law by President Lincoln in 1861 to help pay Civil War expenses. It was later repealed and ruled unconstitutional. In 1913, with World War I on the horizon, Congress passed an amendment to the Constitution, allowing a new income tax to be enacted — and it has been with us ever since, in some form or another. The rates often change, and historically they have peaked in times of war, reaching a lofty all-time high of 94% at the end of World War II.

Taxes now provide revenue for a much broader range of services, from that smooth new highway you take to work to the ceramics program in your kid's public school. Taxes also fund parks, police, courts, libraries, health and welfare programs, and social services. These get paid for by you, the taxpayer — and when a new service is proposed, you can decide for yourself if you think it's worth the money coming out of your paycheck. And you have the opportunity to voice this decision when you vote.