John earns a more modest salary and rents a small apartment. Jane and John do NOT pay the same amount in taxes. Their ability to pay differs vastly. Some people believe it's only fair that people pay taxes based on the amount of government aid they receive. Just remember that businesses pay taxes to federal, state and local governments.
Businesses pay taxes on their profits.
Businesses also pay unemployment insurance, worker's compensation, social security and Medicare insurance. If you have a store credit, you can use the credit to purchase merchandise free of charge. If you have a tax credit, your taxes are reduced by the amount of your credit. You can get tax credits for purposes such as child care expenses and the earned income credit for low-income taxpayers. A person who relies on someone else for financial support.