Taxes

What is a "tax?"

• A sum of money that people & businesses must pay the government in return for goods & services

• Money that the people must pay to the President

• An amount of money that people must pay before they can learn to drive

• A sum of money that people & business must pay the government in return for special privileges

How many kinds of tax(es) are there?

• 2

• 3

• 4

• 5

Answer explanation

Income, Property, and Sales

Income tax is when a % of a _______________________ is paid to the government

• Paycheck

• Apartment

• Restaurant Bill

• Clothing Receipt

Answer explanation

Income tax is a tax on the money coming in to your bank account.

Property tax is a tax on what?

• A house that you buy

• Land that you own

• Other big items that you own

• All of the above

Sales taxes add a % to ___________________________

• Admission to national parks

• Medical services

• Goods you buy

• The salary you earn

Answer explanation

Sales tax is a tax on things that are for sale.

Who collects the taxes?

• Supreme Court

• FBI - Federal Bureau of Investigation

• President

• IRS - Internal Revenue Service

Answer explanation

The IRS collects taxes because they are a part of the Treasury Department, which is the governmental department that deals with money.

What is "revenue?"

• Money made from a job

• Money given to you in someone's will

• Money you are given by family

• Money you find on the sidewalk

Answer explanation

What is not an example of something that taxes usually pay for?

• Bridges

• Cars

• Railroads

• Airports

Answer explanation

Cars are not a public good, they are an individual good.

Property tax does not apply to __________________________.

• Houses

• Clothing

• Apartments

• Land

Answer explanation

The tax applied to clothing is sales tax. Once you've bought something small like that, you don't have to pay any more taxes on it.

Taxes are the same no matter where you live.

• True

• False

Answer explanation

Taxes will vary depending on where you live. For example, the property taxes in Beverly Hills, California will be higher than the property taxes in East St. Louis, Illinois.