Taxation

What are taxes?

• the amount of money citizens and businesses charge the government so they can pay all their bills.

• the amount of money citizens and businesses are required to pay so the government can function and provide services.

• the amount of money citizens and businesses are required to pay so they are protected from criminal organizations.

• the amount of money citizens and businesses pay the government because it makes them happy.

All of the following are government services EXCEPT

• Food Inspectors

• FBI

• Public schools

• Farms

Who is the biggest employer in the nation?

• Amazon

• Google

• The Federal Government

• Ford Motor Company

Sales tax is the tax you pay

• when you buy something.

• when you sell something.

• when you barter.

• when you give something as a gift.

Not everything is taxed at the same rate. In many states, ___________ are exempt from sales tax.

• Clothing

• Groceries

• Toys

• Shoes

An excise tax is often called a "hidden" tax because

• sellers cut out the tax altogether.

• buyers exercise their right to purchase the product.

• buyers hide the products in their cart.

• sellers usually include the amount of the tax in the price of the item.

Income tax is the tax you pay on money you receive from all of the following sources EXCEPT

• your job

• rent from tenants

• gifts you receive from your friends and relatives

• earnings on investments like stocks

This tax helps fund the basic retirement program run by the federal government.

• Social Security Tax

• Property Tax

• Medicare Tax

• Sales Tax

During your working years, social security tax takes a percentage of your earnings. Then when you retire or are disabled

• your social security tax is used to pay medical costs.

• you become eligible to receive monthly payments.

• you lose your benefits.

• you can leave your Social Security benefits to your loved ones when you die.

Medicare is a tax taken out of your paycheck and is

• the federal government's retirement program.

• the federal government's elder care institution.

• the federal government's health care system for people age 65 and over.

• a really poor substitute for private health insurance.