There are two certain things in life: death and taxes. In today's world, the majority of our government's revenue comes from taxation. A tax is not a payment or voluntary donation, but a contribution imposed by the government (Mikesell, 2011). Taxes are a sum of money collected from citizens and are used to provide public goods and services that benefit our communities. Taxes are amounts established in a political process of structured laws to determine how the collective cost of public services will be distributed among elements of the market economy. The two most important fiscal policies are the level of taxation, i.e. the amount of taxes, and the structure of the system, i.e. how to raise revenue (Mikesell, 2011). To better understand taxation and its purposes, this paper will discuss in detail the different tax structures: income taxes, sales taxes and property taxes and describe their advantages and disadvantages based on fairness, economic effects, collectability and to transparency. In the United States, taxes existed even before the nation was founded. The criterion for taxes was proposed in Adam Smith's 1776 guide on taxation for a market-based economy in Wealth of Nations (Mikesell, 2011). During the Civil War, the government relied on excise taxes, but these did not generate sufficient revenue, so in 1861 the first income tax was enacted. In 1895, the tax was declared unconstitutional by the Supreme Court, and in 1913, the 16th Amendment was adopted. passed which gave the United States the power to tax personal income and solved the revenue problem (Mikesell, 2011). During the Great Depression of the 1930s, the government added unemployment benefits and Social Security programs. have-nots”. Works CitedDavidson, C. (2006, July 24). The history of taxes. In Yahoo Inc. Retrieved November 23, 2010, from http://www.associatedcontent.com/article/45350/the_history_of_taxes.html?cat=37Ellis-Christensen, T. (2010, September 10). What is retail sales tax? In Wise Geek. Retrieved November 21, 2010, from http://www.wisegeek.com/what-is-retail-sales-tax.htmHoletzky, S. (2010, September 26). What is property tax? In Wise Geek. Retrieved November 23, 2010, from http://www.wisegeek.com/what-is-property-tax.htmMikesell, J. (2011). Tax Administration: Analysis and Applications for the Public Sector (8th ed.). Boston Pollick, M. (2010, August 2). What is income tax? In Wise Geek. Retrieved November 21, 2010, from http://www.wisegeek.com/what-is-income-tax.htm