Tax book

What I know about taxes?

What are taxes? A sum of money demanded by
government to support the government itself as
well as specific facilities or services

What is a community? A group of people with common
interests and concern for the common good

What are the benefits of taxes? Income for the running
the government, free education and Medicare, and social
security

What is federal income tax? Earned and unearned
income, higher income= more tax paid

What is state income tax? Earned and unearned income,
higher income= more tax paid

What is a payroll tax? A set percentage of earned income

How do employers contribute to payroll taxes?
Responsibility to withholding from an employee’s
compensation and paying an employer’s contribution for
social security and Medicare taxes under the federal
insurance contributions act (FICA).

What is a property tax? A tax on property, such as land,
buildings (including homes) and motor vehicles.