Understanding the U.S. Tax System

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What is the purpose of taxes?

Back

To fund government jobs and services

Front

What is gross pay?

Back

The amount before taxes are taken out.

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What is the purpose of social security tax?

Back

To help people when they retire

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What is the purpose of Medicare tax?

Back

To help people age 65 and over with medical care

Front

What is the purpose of state and federal unemployment taxes?

Back

To provide financial support for individuals who are unemployed

Front

What is income tax?

Back

A tax paid by individuals based on their income.

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What is property tax?

Back

A tax paid based on the value of owned property.

Front

What is sales tax?

Back

A tax placed on all retail sales.

Front

What is the purpose of business taxes?

Back

To tax businesses based on their profit

Front

What is the purpose of tariffs?

Back

To tax imports