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New Immigrant's Financial Roadmap
6. Understanding US Taxes/Why We Pay Taxes
6. Understanding US Taxes Illustration
Syllabus Slides

Why We Pay Taxes

01.Funding Public Services

Tax revenues pay for the services that make a community function: public schools, police and fire departments, highways, public transit, local parks, and libraries. They also fund national programs like defense, environmental protection, and medical research.

02.The Social Contract

Paying taxes is part of the social contract. By contributing a portion of our earnings, we support a stable society that enables businesses to thrive and families to live safely.

03.Civic Benefits

Filing taxes and keeping accurate records is also critical if you plan to apply for US citizenship or sponsor family members for visas in the future, as it proves your status as a responsible, contributing resident.

Chapter check

Q1.Which group of states has no sales tax, according to the course?

Q2.Roughly how much extra self-employment tax does a 1099 contractor pay?

Q3.FICA on a paycheck consists of: