What I Know About Taxes FLIP BOOK.docx

What I Know About
Taxes

WHAT ARE TAXES?
$ Demanded by the Government

WHAT IS A COMMUNITY?

A Group of People with Common Interests and Concern for
the Common Good

WHAT ARE THE BENEFITS OF TAXES?
Taxes Provide Support for Our Communities

WHAT IS FEDERAL INCOME TAX?
A Tax Determined by Earned and Unearned Income

WHAT IS STATE INCOME TAX?

A Tax Determined by Earned and Unearned Income, Paid by
Those Who Live in States with a State Income Tax

WHAT IS A PAYROLL TAX?

A Tax on Earned Income that Supports the Social Security
and Medicare Programs

HOW DO EMPLOYERS CONTRIBUTE TO PAYROLL TAXES?
They Match the Pay of Their Employees

WHAT IS A PROPERTY TAX?
A Tax on Property, Buildings and Motor Vehicles

WHAT IS A SALES TAX?
A Tax on Purchased Goods and Services

WHAT IS AN EXCISE TAX?

Taxes Collected from the Seller or Retailer and as Such
Often Remain Hidden in the Price of a Product or Service

WHAT ARE THE TWO MOST IMPORTANT THINGS TO
KNOW ABOUT TAXES?

Taxes Play a Role in Both Earning and Spending and
Understanding Them are an Important Part to Money

Management