Types of Taxes
Define consumption tax and give an example
A tax on the purchase of a good or service
True or False: A taxpayer may have to pay a penalty for a late tax payment?
True
Name one way taxes helps the community
Answers vary
Social security and Medicare tax are both types of
Payroll Tax
Tax taken from individual and business income
Income taxes
True or False: Most people who don’t work don’t need to file a tax return
False
What can't be taxed as part of a person's income
Their valuables
What is revenue?
What type of taxes pay for improvements such as roads?
Payroll taxes
True or False: People without kids don't have to pay the taxes that fund the schools
False
True or False: Taxes pay the salaries of first responders
True
Give two examples of government revenue
Taxes and Borrowed money
What are the three types of property tax?
Residential, Commercial, and Industrial
Who is responsible for calculating taxes and filing tax returns? The IRS or the taxpayer?
The Taxpayer
Name two ways tax can benefit you personally
Vary
A criteria of tax fairness that assumes that people with different amounts of wealth or income should pay different amounts of taxes is called:
Ability to pay
Name the 4 types of taxes and one thing that is important about each of them
1. Income
2. Payroll
3. Property
4. Consumption
Where are the 3 places that your tax can go to?
State Government, Federal Government, and Local area (for property tax)
What type of taxes pay for schools?
Payroll tax
Governments purchase these for the benefit of the community as a whole.
Public Goods and Services