Over the years, the amount paid in social security taxes has greatly increased. This is because there are fewer workers paying into the system for each retired person now receiving benefits. Today, some workers pay more social security tax than income tax. The most important taxes on consumption are sales and excise taxes. Sales taxes usually get paid on such things as cars, clothing and movie tickets.
Sales taxes are an important source of revenue for most states and some large cities and counties.
The tax rate varies from state to state, and the list of taxable goods or services also varies from one state to the next. Examples of items subject to Federal excise taxes are heavy tires, fishing equipment, airplane tickets, gasoline, beer and liquor, firearms, and cigarettes. The objective of excise taxation is to place the burden of paying the tax on the consumer. A good example of this use of excise taxes is the gasoline excise tax. Governments use the revenue from this tax to build and maintain highways, bridges, and mass transit systems.