Types of Taxes - Unit 12

Multiple Choice

If a single person earns $30,000 in 2023, how much will the person pay in federal income tax?

• $2,880

• $3,380

• $3,600

• $4,200

Match

Match the example to the term.

• New Jersey uses different tax brackets for income taxes, ranging from 1.4 percent for income up to $20,000 and 10.75 percent for income over $1 million.

• Michigan's state income tax rate is 4.25 percent regardless of income.

• Many school districts in Pennsylvania levy a $10 yearly tax on each adult who lives in the district.

progressive tax

proportional tax

regressive tax

• progressive tax

• proportional tax

• regressive tax

Match

Match the explanation to the term.

• Individuals must pay the full amount of these taxes to the federal, state, or local government.

• Employees and employers split the cost of these taxes, which include Social Security tax and Medicare tax.

• Businesses pay these taxes on their profits.

personal income taxes

payroll taxes

corporate taxes

• personal income taxes

• payroll taxes

• corporate taxes

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 (3 answers are correct).

• income tax

• Social Security collected through payroll tax

• Medicare collected through payroll tax

• corporate tax

Multiple Choice

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

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

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

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

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

Multiple Select

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

• purchasing their first house

• renting an apartment

• renovating a house they own, increasing its value

• purchasing an additional car