12.2 Types of Taxes

Open Ended

Why do you think taxes are important for a country's economy and society?

Multiple Choice

Which of the following is an example of a regressive tax?

• Sales tax

• Personal income tax

• Corporate tax

• Property tax

Open Ended

What are the major types of taxes in the United States?

Multiple Choice

Which government agency is responsible for collecting federal taxes and enforcing tax rules in the United States?

• Federal Reserve

• Internal Revenue Service (IRS)

• Department of Commerce

• Social Security Administration

Multiple Select

Which of the following are characteristics of a progressive tax system?

• Tax rate increases as income increases

• Tax rate is the same for all income levels

• Places a higher tax burden on people with higher incomes

• Places a higher tax burden on people with lower incomes

Fill in the Blank

The federal corporate tax rate is ___ percent.

Multiple Select

Imagine you get a job stocking shelves at a grocery store. Which types of taxes will be withheld from your pay? Select all that apply.

• corporate tax

• income tax

• Social Security collected through payroll tax

• Medicare collected through payroll tax

Multiple Choice

Which of the following items is NOT taxed with sales tax in Pennsylvania?

• Prepared foods from a restaurant

• Cereal and vegetables

• Used video game from a store

• Electronics

Fill in the Blank

Excise taxes are often used to help pay for the construction and maintenance of public infrastructure, such as ___ .

Multiple Choice

Which of the following is an example of an excise tax?

• Employers and employees each pay a Social Security tax of up to 6.2 percent of an employee's income.

• Purchases made in the state of Ohio require a tax payment of 5.75 cents for every dollar.

• People who live in the municipality of Hanover, Pennsylvania pay a 1 percent local income tax.

• Owners of very heavy vehicles, such as tractor-trailers, must pay a federal tax of at least $100 each year they use the vehicle.

Multiple Select

Which actions would increase the amount of property taxes a Pennsylvania resident pays yearly? Select 2 that apply.

• purchasing an additional car

• renting an apartment

• renovating a house they own, increasing its value

• purchasing their first house