Earned income
what is money you receive from working a job?
Earned income
what does an effective tax rate tell you?
The percentage of income actually paid in taxes.
who makes employers contributions
the employers
what is an excise tax
a tax placed on specific goods or activities
What is a tax exemption
Something that qualifies to be excluded from taxation under the applicable rules
which of these is an example of earned income: money from a job, a gift from a family member, money from a birthday card.
Money from a job.
if you earn 1,000$ and pay 100 in taxes, what is your effective tax rate.
10%
are employer contributions paid by the employee or the employer.
The employer.
which is an example of something that can have an excise tax: gasoline or a notebook.
gasoline
if someone qualifies for an exemption, would it generally increase or decrease the amount subject to tax
decease
A student works at a restaurant and earns 15$ an hour. what is the money they make from their job called
Earned income
someone earns 2,000$ and pays 200$ in taxes. what is their effective tax rate?
10%
An employee earns 500$ in wages, but the employer has additional costs because they employ that person. What are those additional cost called
employer contributional
A tax is specifically placed on gasoline what type of tax is it?
Excise tax
does everyone automatically qualify for every tax exemption?
No
Why is a paycheck considered earned income?
Because the money was received for work of services
If someone earns 3,000$ and pays 450 in taxes, what is their effective taxe rate
15%
why do employer contributions matter to a business?
They are part of the total cost of having employees.
what is the main difference between and excise tax and a general sales tax.
an excise tax applies to specific good or activities, while a general sales tax can apply more broadly to purchase.
why could an exemption change the amount of tax someone owes?
it can reduce the amount of income or other qualifiying amount that is subject to tax
if someone receives 500$ from working and 500$ as a birthday gift, which 500 is earned income
Working.
Why can the effective tax rate be useful
it shows how much of someones income actually went towards taxes
if an employee earns 600$ but they employer spends more than 600$ because of additional employment costs what does this show.
the total cost of employing someone can be more their wages
A government wants to tax a specific product rather than apply a general tax to all purchases. what type of tax would fit that description?
Excise tax
A person qualifies for an exemption that removes 1,000 from the amount of income subject to tax. if they originally had 5,000 subject to tax?
4,000$