Taxes serve a very important purpose in society. We all pay taxes in some way, shape, or form, whether it's income tax from our paychecks, property taxes on our homes or automobiles, or sales tax on items we purchase. These taxes all go to fund initiatives for the greater good, including schools, roads, libraries, and government operations. In this course, we'll focus mostly on income tax. There are two types of income tax: earned income tax and unearned income tax. Each is taxed at different rates at federal, state, and local levels.