II.Types of Taxes Federal, State, Local Taxes come in many varieties and are assessed at all levels Federal taxes – military, roads, clean food, air, water, FDIC, and other social programs such as Social Security / welfare State taxes – state roads, universities, state parks, police Local taxes – schools, parks, libraries, community services Excise Tax  Imposed on manufacture or sale of goods or services  Can be used to encourage or discourage behavior  Examples include gasoline, firearms, alcohol, phone service