Tax Facts
True or False: Citizens AND Corporate entities are required to pay taxes
True! Taxation is required for both individuals and conglomerates
How often do taxpayers have to file an income tax return?
Annually. Taxpayers have to file every year to determine their tax obligations
What's the sales tax in Iowa?
Sources say either 6% or 7% depending on county
According to economists, do Tariffs promote economic growth?
No- Tariffs reduce growth, while free trade stimulates the economy
What are taxes?
A charge collected by state, local, and national government
If you make $45K a year, what's the tax rate you have to pay?
Tax Bracket 2: Income $10,001-50,000 (20% rate)
Tax Bracket 1: Income $0-10,000 (10% rate)
Tax Bracket 3: Income $50,001- ABOVE (30% rate)
You're making a $60 purchase in Iowa. How much sales tax will you pay?
$3.60
The sales tax in Iowa is 6%
60 x 0.06 = 3.60
What is a Tariff?
A tax imposed by the government on the import or export of goods
When is the federal tax deadline?
April 15th
What is the equation for income tax?
Income Tax = Income x Tax Rate
True or False: Sales tax is only applied to goods- not services.
False: In some regions, sales tax applies to both goods and services
True or False: Tariffs are always fixed
False: Tariffs can be fixed (constant sum) OR variable (amount varies on supply and demand)
What are taxes used for? What's two examples?
Tax money is used to pay for items the government provides at federal, state, and local levels.
EX: Public infrastructure maintenance (Roads) , social services, school funding, social security
SOLVE: You earn $70k a year, and the income tax rate is 30%, how much tax will you pay?
$21K
70,000 x 0.30 = 21,000
True or False: Sales tax rates are the same in every state
False: Sales tax rates vary by state
Because of President-elect Donald Trump's new tariff plan, will the price of gasoline decrease?
No- in short, tariffs would cause the import of essential goods to decrease, and the price of imported goods (like gasoline) to rise
What is the purpose of taxes? Are they necessary?
Taxes are vital to maintaining a functioning society and ensuring that the government can provide the services and support citizens rely on.
What is gross income?
Total income earned by an individual or business before any deductions
Federal sales tax is 0.05%
WRONG- Trick Question. There is no federal sales tax
Tariffs are used to raise the price of imported goods to: _______ ____________
Discourage Consumption, so locals will buy local products, and the economy will be "stimulated"