The purpose of this article is to illustrate the structure of taxation. I will differentiate between the types of taxes and the roles they currently serve. Subsequently, I will explain what equity, efficiency, effectiveness and transparency (EEET) are and show how they apply to taxation as a whole. Finally, I will conclude on how the EEET applies to the four types of taxes. The four types of taxes discussed in this document are income tax, sales tax, property tax, and user fees. The income tax was not permanently established until the passage of the 16th Amendment in 1913. Most federal taxes previously came from excise taxes on tobacco, alcohol, and other goods consumption. The U.S. Constitution, when it was written and continues to do so, legitimizes taxation in the United States through Article I, Section 8, according to which Congress has the power to lay and collect taxes, taxes, etc., to pay debts or to ensure common and general defense. welfare of the United States (Cornell Act LII). Investopedia defines income tax as “a tax that government(s) impose on financial income generated by all entities within their jurisdiction (Investopedia, 2014). Businesses and individuals are required to file a tax return each year to determine whether they owe taxes or are entitled to a refund. This is determined by measuring the total income one earns at a designated tax rate, calculating one's taxable income, which is any or all items of income reduced by other adjustments or expenses during that year of taxation. There are different subcategories of income tax; there is a federal income tax that is set by the federal government, aside from a few states, there is a state income tax that is imposed on their respective residents, as well as the possibility of having a local income tax income..... . middle of paper ......). National Priorities Project. Retrieved April 14, 2014 from http://nationalpriorities.org/budget-basics/federal-budget-101/revenues/ -Fisher, G (1996). The worst tax? : A History of the Property Tax in America (Univ. Press of Kansas) - Heyne, P. (n.d.). Efficiency. Library of Economy and Freedom. Retrieved April 14, 2014 from http://www.econlib.org/library/Enc/Efficiency.html-Hyman, David M. (1990) Public Finance: A Contemporary Application of Theory to Policy, 3e, Dryden Press: Chicago, IL-Musgrave, RA (1987), “Short of Euphoria”, Journal of Economic Perspectives 1-Definition of taxable income | Investopedia. (nd). Investopedia. Retrieved April 14, 2014 from http://www.investopedia.com/terms/t/taxable Income.asp-Understanding How Work Taxes Work. (September 18, 2013). US Tax Center. Accessed April 14, 2014 from http://www.irs.com/articles/ Income-tax