WHAT I KNOW ABOUT TAXES
WHAT ARE TAXES?
Taxes-
A sum of money demanded by a government to support the government itself as well as
specific facilities or services.
WHAT IS A COMMUNITY?
Community-
A group of people with common interest and concern for the common good.
WHAT ARE THE BENEFITS OF TAXES?
Benefits of taxes-
Roads, libraries, military, public schools, police and fire departments, and recreation.
WHAT IS FEDERAL INCOME TAX?
Federal income tax-
Tax is determined by:
Earned and unearned income
Higher income = more tax paid
Paid by:
Majority of people living in the U.S.
Help funds?
Operations of federal government
Government programs
Education
Defense of the nation
Disaster relief
WHAT IS STATE INCOME TAX?
State income tax-
Tax is determined by?
Earned and unearned income
Higher income = more tax paid
Paid by?
Those living in states with a state income tax
Not all states have a state income tax
Help funds?
Varies by state
State highways
Operations of state government
WHAT IS A PAYROLL TAX?
Payroll tax-
A tax on earned income that supports the social security and Medicare programs
HOW DO EMPLOYERS CONTRIBUTE TO
PATROLL TAXES?
Employers’ contribution to payroll tax-
Withholding from an employee’s compensation and paying an employer’s contribution for
social security and Medicare taxes under the federal insurance contributions.
WHAT IS A PROPERTY TAX?
Property tax-
A tax on property, such as land, buildings, and motor vehicles.
WHAT IS SALES TAX?
Sales tax-
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 producer or service
WHAT ARE THE TWO MOST IMPORTANT
THINGS TO KNOW ABOUT TAXES?
Two important things about taxes-
When to pay them
How much you’re paying