Where Do State Taxes Go?
Introduction Taxes are financial charges imposed on individuals, companies and organizations. Both the federal and state governments use the money collected to pay for public services and programs. Taxation has proven to be the best way to generate the hundreds of millions of dollars necessary to efficiently run a state. State governments have a budget, the minimum amount needed to keep it operational. Without a steady influx of money to pay for expenditures, a state could go bankrupt, as New York almost did in 1975. The Taxes that States Impose All states impose a variety of taxes. Some state taxes pertain only to individuals, while others are only for businesses. The taxes that most people are familiar with are income, sales and property taxes. Residents are required to pay taxes on salaries, tips and investment income. Most states levy a sales tax on all purchased items; Oregon does not. There are also property taxes on residential and commercial real estate. Any person or company o
