Individuals

Understanding taxes can help individuals (you!) make informed decisions in many daily aspects of life. For example,

• owning a home vs. renting, 
• saving for retirement or education, 
• investing in stocks and bonds, 
• evaluating job offers, 
• planning for a family, or 
• arranging for gifts and estates.

Businesses

Businesses may also make several decisions based upon the tax consequences; therefore, it is important for them to understand how taxation may affect

• organization form (corporation, partnership, sole proprietorship),
• location,
• purchasing vs. leasing buildings and equipment,
• financing with debt vs. equity,
• compensating employees (hiring vs. contracting),
• distributing business profits, and
• acquisition alternatives.

Government Agencies

Government agencies implement tax systems. When setting these systems in place or when making changes, legislators must consider who, what, when, where, why, and how much to tax. Additionally, they need to consider how the tax may affect political candidacy.