Types of Taxes

Match the following

• consumption tax on sales of goods & services

• Sales Tax

• average tax burden decreases with income

• Regressive Tax

• average tax burden increases with income

• Property Tax

• same rate of tax for all incomes

• Proportional Tax

• local tax on real estate owned

• Progressive Tax

Another name for a proportional tax is a (a)   tax.

Lamarie has 10 acres of land worth $25,000. Luke has 20 acres of land with a house worth $18,750. _​ ​ (a)   pays more in property taxes than ​ ​ (b)   because the value of his property is ​ (c)   ​ than the value of Luke's even though Luke's property includes a ​ (d)   .

• Lamarie
• Luke
• higher
• home

Which of the following tax revenues stays 100% local: income tax, sales tax, property tax?

5 sec audio

Which of the following investments involves the least amount of risk?

• Certificate of Deposit (CD)

• Mutual Fund

• Stocks

• Real Estate

Javante's investment portfolio has tripled in its value in five years. Which of the following is probably true of Javante's investments?

• They are illegal.

• They are high risk.

• They are low risk.

• They are no risk.

Meagan borrows $25,000 to make improvements to her kitchen. She has excellent credit. Which is probably true of the interest she will pay on her loan?

• It is high.

• It is low.

• She won't have to pay interest.

• No bank will loan her money.

Incomes up to $10,000 pay 2%; incomes from $10,001 to $20,000 pay 4%; Incomes above $20,000 pay 5%. This is an example of which type of tax?

• regressive

• progressive

• sales tax

• property tax

Draw a line showing what a progressive tax looks like.

Draw a line showing what a flat tax looks like.