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I had a job for awhile so I needed to do a tax return for the last few years. Having to pay taxes took money out of my paycheck. I caused my to be more aware of my purchasing decisions because I didn't have a ton of money. Once I got my tax return money I was able to go out and buy a few things and save some of it. Therefore, paying taxes and getting my tax return effected my purchasing decisions.

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The government needs to pay bills, which is done through the taxes that people pay the government. There are 3 different types of taxes including: sales, income, and property taxes. Sales taxes ensure that consumers pay the government for its services. “sales tax, with certain exclusions such as medicine, WIC foods major purchases, affects the consumer at his/her chosen rate of consumption” (pg. 12). Therefore, the more things that you purchase the more sales taxes you will pay. When it comes to property taxes, there can be a burden put on property owners. “Some property taxes are passed along to renters but the majority falls on home owners” (pg. 12). Lastly, income taxes are taken out of what people earn at their jobs. “These taxes are taken

out by an employer and paid to the government” (pg. 12).

Given that these taxes take money away from consumers there can be a decrease in items purchased by people. Sales taxes can add up fast when you buy multiple items, which can cause a burden on consumers who may not have a lot of money. Income taxes can also possibly cause a decrease in ones purchasing decisions. Since income tax takes money out of your income it can cause a decrease in how much people can spend on items. Therefore, taxes can cause a decrease in the purchasing of items by consumers.