Understanding Taxes

Taxes, it is viewed as a negative term by almost anyone you talk to.

But if you understand why taxes are ________, and more importantly, how tax dollars are ________, you will begin to see the benefits you get from your tax dollars.

The government collects those taxes for various reasons. The main reason would be ________.

With that ________, that is what allows the government to be able to provide the ________ the government provides.

• authority, services

• budget, funds

• policy, support

• leadership, benefits

On the federal level, the ________ which is part of the U.S. ________ Department, is responsible for enforcing the tax laws written by Congress and approved by the ________, for processing tax returns, for collecting taxes, and for issuing tax ________.

• IRS, Treasury, President, refunds

• FBI, Justice, Senate, warrants

• EPA, Interior, House of Representatives, regulations

• NSA, Defense, Vice President, clearances

The most common tax on the federal level is the federal ________ tax.

On the state level, each state writes its own ________ and each state has its own agency which collects the taxes and then ________ it to the appropriate state agencies so they can pay the state’s ________.

• laws, distributes, bills

• constitution, allocates, debts

• laws, allocates, expenses

• regulations, distributes, budgets

On the local levels, ________ and ________ governments and public ________ districts all have the ability to collect taxes.

• state and federal, transportation

• city and county, school

• national and state, healthcare

• federal and international, utility

Common taxes collected by local governments are the ________ and ________ taxes.

Any U.S. citizen who earns an income is subject to filing a federal income ________ and depending on how much ________ they earn in one year, paying a portion of that income to the ________.

• tax return, money, IRS

• tax form, revenue, government

• tax return, revenue, IRS

• income statement, money, IRS