Income Taxes
This type of tax is paid on the money individuals and businesses earn.
What is Income Tax?
This tax is added to the price of goods and services when you buy them.
What is Sales Tax?
This tax is paid on homes, land, or other real estate.
What is Property Tax?
This tax is taken directly from your paycheck to fund retirement and healthcare.
What is Payroll Tax?
Taxes fund this type of shared service that everyone benefits from.
What are public goods?
The government uses this form to determine how much income tax you owe each year.
What is a tax return (Form 1040)?
In Texas, this is the current state sales tax percentage.
What is 6.25% (state), often totaling ~8.25% with local add-ons?
Property taxes are typically used to fund which local service?
What are public schools?
Payroll taxes fund these two major federal programs.
What are Social Security and Medicare?
This level of government collects property taxes.
What is local government?
This federal agency collects income taxes in the United States.
What is the IRS (Internal Revenue Service)?
If a shirt costs $20 and the sales tax is 8%, what is the total price?
What is $21.60?
Who determines the value of your property for tax purposes?
What is the county tax assessor’s office?
Employers also pay a matching amount for this tax.
What is Social Security tax (FICA contribution)?
Name one difference between federal and state taxes.
Federal taxes fund national programs; state taxes fund local infrastructure and services.
If you make more money, you may move into a higher tax rate bracket. What is this called?
What is a progressive tax system?
This type of product, like groceries in many states, is often exempt from sales tax.
What are basic necessities (like food or medicine)?
If your property’s value increases, what happens to the amount of property tax you owe?
It increases.
If an employee earns $1,000 and 7.65% is withheld for payroll taxes, how much is taken out?
$76.50
Name all four main types of taxes covered today.
Income, Sales, Property, and Payroll.
Name one public good or service that primarily relies on income tax funding.
What is defense, healthcare, or federal education programs?
Why do some states rely more heavily on sales tax than income tax?
Because they have no state income tax and fund programs through consumption taxes.
This type of property tax applies to things like vehicles, boats, or business equipment.
What is personal property tax?
Why do payroll taxes affect every worker, even if they don’t make enough to owe income tax?
Because they are automatically deducted to support federal programs.
If you buy a car, you might pay both sales tax and property tax on it. Explain how.
Sales tax when purchasing, property tax each year for ownership.