Understanding Taxes

What is the importance of paying taxes?

• Paying taxes is not important

• Paying taxes is important because businesses get to keep the money you pay in taxes

• Paying taxes is important because it funds government programs and services.

• Paying taxes is important because it helps you get rich.

Name three types of taxes.

• sleeping tax, eating tax, talking tax

• talking tax

• Excise tax,

• Income tax, sales tax, property tax

How are taxes used by the government?

• To provide businesses with extra cash .

• To fund public services and programs

• To buy bitcoin.

• The government does not use tax money.

Why is it important to follow tax laws ?

• To avoid penalties, promote fairness, and fund government programs.

• To increase personal wealth

• To support illegal activities

• To evade taxes and save money

What is the difference between direct and indirect taxes?

• Direct taxes are refunded, while indirect taxes are kept by the government.

• Direct taxes are only applicable to individuals, while indirect taxes are only applicable to businesses.

• Direct taxes are paid indirectly through the purchase of goods or services, while indirect taxes are paid directly to the government.

• Direct taxes are paid directly to the government, while indirect taxes are paid indirectly through the purchase of goods or services.

Give an example of a direct tax.

• Sales tax

• Property tax

• Excise tax

• Income tax

Give an example of an indirect tax.

• income tax

• property tax

• excise tax

• sales tax

How does the government use tax revenue to provide public services?

• By allocating funds to public services.

• By investing tax revenue in the stock market.

• By distributing tax revenue to individual citizens.

• By using tax revenue to pay for birthday parties for citizens.

What are some consequences of not paying taxes?

• no consequence, taxes are for fools

• You get extra money in your check

• Legal penalties, damaged credit score, difficulty obtaining loans or mortgages, seizure of assets