2.02 PF Basics of Taxes

A person who pays a tax to national, state, county or municipal governments

• community
• taxes
• taxpayer
• sales tax

A sum of money demanded by a government to support the government itself as well asspecific facilities or services

• taxes
• taxpayer
• earned income
• community

A group of people with common interests and concern for the common good

• community
• taxpayer
• taxes
• income tax

Who is Medicare designed to help?

• Low income families 
•  Single parents 
• Senior Citizens 
•  Children of unemployed parents 

Money earned from working for pay

• excise tax
• income tax
• sales tax
• payroll tax

Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he EXCLUDE from his presentation because it is not correct?

• Property taxes are assessed at the same rate for all types of property, including homes, land and building, regardless of location or whether they are used for business or personal use.
• Property taxes are usually charged by state and local governments to pay for local schools and other services and expenses incurred by these governments
• Property taxes are commonly paid on automobiles. This tax usually paid once per year when the automobile is licensed.
• Property tax on homes, land and buildings are usually only paid once or twice each year.

Taxes collected from the seller or retailer and as such often remain “hidden” in the price of aproduct or service, rather than being listed separately

• sales tax
• income tax
• property tax
• excise tax

Which statement is NOT TRUE about property taxes?

• Property tax is often charged by states or local governments to pay for local schools.
• The property tax rate is set by the federal government to be equal in every state.
• The fee paid to license a vehicle is an example of property tax. 
•  Property taxes are most often paid only once or twice each year. 

A tax on earned and unearned income

• property tax
• unearned income
• income tax
• community

Taxes that are charged on consumption items such as gasoline, hotel rooms, and airline tickets are called which kind of taxes?

•  Sales 
•  Excise 
• Federal use
•  property