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Taxes are imposed on three levels: local, state and federal. the taxes collected, work almost identical for each level of government. On the city tax level....taxes are collected from the sale of food, store items(like at walmart), auto sales, etc. the money or taxes collected, are budgeted through the city government to pay for streets repair and new construction, city employee's salary, city street lights and other necessities required to operate a city or town. So, the next time you ride down main street, in your city, you will understand how the police and firemen are paid and how your city taxes work.
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