Personal Finance 2.02

Who is Medicare designed to help?

• Low-income families
• Single parents
• Senior citizens
• Children of unemployed parents

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

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 isnot correct?

• Property taxes are assessed at the same rate for all types of property, including homes, land, and buildings, 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 is usually paid once per year when the automobile is licensed.
• Property taxes on homes, land, and buildings are usually only paid once or twice each year.

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.
  

As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely to be?

• An excise tax on the shirt she purchased
• Income tax on the shirt she purchased
• Sales tax on the shirt she purchased
  

Which statement is true about payroll taxes?

• Payroll taxes are paid on both earned and unearned income.
• Payroll taxes fund different operations and programs of the federal government.
• Payroll taxes fund the Social Security and Medicare programs.
• The amount of tax paid depends on many different factors but increases as income increases.
  

Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be?

• Austin calculated the hours he worked without deducting the hours he spent doing on-the-job training.
• Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
• Austin neglected to deduct the amount required to pay income and payroll taxes.
• Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay period.