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  The state and federal governments that are guiding states and countries need money to survive. Most get much of their revenue from taxes. There are different kinds of taxes.

  Income tax - where a portion of your earnings from work are deducted and sent to a collection agency to run government funded projects. Can be either federal or state. In the US, not all states deduct income tax. Some others give breaks to the military.

  Sales tax - Some states have a tax placed on goods you buy in stores. Amounts may vary. Governments can also tax imports from other countries.

  Learn more at the link below.

  http://en.wikipedia.org/wiki/Tax

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