Why do we pay taxes?

Did you know that once you start earning money a chunk of it will be paid to the government in a form of taxes to cover the cost of services such as free k-12 education, unemployment insurance, healthcare for elderly, local low income assistance, and retirement check to name a few that benefit all Americans? These are called Federal, State, Social Security and Medicare taxes.

Well done!! You have found a job and start working and looking forward to that first pay check usually handed out or deposited into your bank account on a monthly or bi-monthly basis. The salary or wages that you earn is called Gross Income. However you do not get to take home the entire amount as taxes have to be taken out first. What you do take home is your net income.