Characteristics/Types of Taxation

Income tax is-

• Money your employer pays to you
• Money you earn and put into the bank
• tax paid on the money you earn each year
• FREE MONEY!!

Payroll Tax is-

• the amount of money you actually get to take home
• FREE MONEY
• tax taken out of your paycheck by your employer or boss
• tax when you buy something

Sales Tax is-

• Tax on things you buy or purchase
• tax on the house you own
• tax take out of your paycheck
• tax that you pay once a year on your income

Property Tax is-

• Tax on things you buy or purchase
• tax on the house you own
• tax take out of your paycheck
• tax that you pay once a year on your income

Billy gets charged tax every time he buys a new pair of shoes.  What kind of tax is this?

• Income
• Property
• Payroll
• Sales

The county charges the Henry family a tax on the value of the house they own.  What kind of tax is this?

• Income
• Property
• Payroll
• Sales

Mrs. Cyrus earned $74,750 last year working as an accountant.  She paid the federal government $12,000 in taxes on the money she earned.  What type of tax is this?

• Income
• Property
• Payroll
• Sales

Mr. Keen earns $4,350 each month.  However when he gets his paycheck it is always less than $4,350, because taxes have been taken out of his paycheck.  What type of tax is this?

• Income
• Property
• Payroll
• Sales

Mr. Carrier is starting his own business.  He will hire 12 people.  He will have to take taxes out of each persons paycheck to pay the government.  What type of tax is this?

• Income
• Property
• Payroll
• Sales

Sales taxes are

• progressive

• proportional

• regressive