Why do you have to pay state taxes?

Answer by  Kurt (4579)

The states spend more money than they receive from the federal government. The states have sales taxes and income taxes to fund their revenue needs. The funny thing is that the states that do not have income taxes have more people and businesses move there to avoid the higher taxes and they do better financially than states with high taxes.

Answer by  mem4dr (1378)

Although states get some federal funding, there are many services the state provides to its residents that either the government doesn't fully fund or doesn't provide any funding. For example, local school systems get some federal support but the state (and often counties too) usually must also provide some funds.

Answer by  tamarawilhite (17883)

The federal government did not use to give any money at all to states. States only received any federal money in the past 40 years. States manage local roads, schools, hospital districts, and many civil works projects. They support their National Guard units, state psychiatric hospitals, sewer and water infrastructure.