Unit 5 Review

Trevor bought a new pair of jeans, and the price was listed as $50. When he paid for the jeans, the total price was $53.50. The extra $3.50 was for tax. Which type of tax was Trevor most likely paying?

• sales

• estate

• inheritance

• income

 

Huda wants to buy soda. A 12-pack costs $9.50. She knows that with the local sales tax of $2.00, the total should be $11.50. However, when she gets to the checkout, the total is now $13.00. Which type of tax is Huda MOST likely paying that would explain the extra $1.50?

• estate

• excise

• inheritance

• income

Daniel and Melissa just bought a new house for $200,000. Each quarter, they now have to pay $4,000 in taxes. Which type of tax are they MOST likely paying because of this purchase?

• estate

• inheritance

• real estate property

• income

Lavonda’s very wealthy grandmother recently died. After her death, everything she owned totaled $1,000,000. However, her family was only given $700,000. What MOST likely happened to the other $300,000?

• It was used to cover income taxes.

• It was used to cover sales taxes.

• It was used to cover excise taxes.

• It was used to cover estate taxes.

Raymond’s grandfather recently passed away. He left Raymond $1,000,000 in his will. Raymond’s lawyer tells him not to spend all $1,000,000 because he will owe some of it to the government. Why is this MOST likely true?

• Raymond will have to pay inheritance tax.

• Raymond will have to pay real estate property tax.

• Raymond will have to pay excise tax.

• Raymond will have to pay estate tax.

 

Tanya has money that she wants to leave to her grandchildren after she dies, but she doesn’t want them to have to pay an inheritance tax. What is the BEST way for Tanya to leave money to her grandchildren tax-free?

• Put all of her money into a 401k.

• Start gifting each of them $15,000 per year now.

• Put all of her money into stocks and bonds.

• Start gifting each of them $25,000 per year now.

 

Joseph has a new job where he will make $1000 each week. When he gets his first paycheck, however, he only receives $875. Which tax has Joseph MOST likely paid?

• inheritance

• real estate property

• income

• estate

Which agency collects taxes in the United States?

• FBI

• ATF

• CIA

• IRS

Which type of tax are Social Security tax and Medicare tax considered to be?

• income

• inheritance

• excise

• real estate property

In the United States, people are sorted into different tax brackets so that they pay differing amounts of taxes based on their income level. Which type of tax system does this BEST demonstrate?

• regressive

• progressive

• proportional

• flat