WROC Rochester First
CPA Tom Walpole discussed the basics of taxes and why we pay them Monday on News 8 at Sunrise. Walpole said taxes are a special kind of fee or charge the government requires people to pay in order live and work in their state and country. Sales tax for example are a percentage of the total price when you buy things like mobile phones, sneakers or a new toy. New York's sales tax rate is currently 4 percent. Depending upon the local municipality, the total tax rate can be as high as 8.875 percent. Walpole said people also pay taxes to the state and federal government on the money they earn from their jobs. Companies also pay taxes on profits they make. In addition, those who own property like buildings and homes pay property taxes. If you inherit money or win the lottery you will also pay a tax on that sum.