Understanding Payroll Taxes and Economic Impact

What was the payroll tax rate for workers before the recent cut?

• 4.2%

• 6.2%

• 5%

• 3.1%

How much did a typical family making $50,000 save due to the payroll tax cut from 6.2% to 4.2%?

• $1,500

• $1,000

• $3,100

• $2,100

What is President Obama's proposal for the payroll tax rate in 2012?

• Increase to 5%

• Maintain at 4.2%

• Decrease to 3.1%

• Revert to 6.2%

How does the payroll tax cut primarily benefit the economy?

• By increasing exports

• By increasing savings

• By boosting demand and business for local companies

• By reducing government spending

According to Moody's Analytics, how do tax cuts for typical employees compare to those aimed at wealthier Americans?

• Less effective

• Equally effective

• More effective

• No difference in effectiveness

What is the proposed method to fund the payroll tax cut extension?

• Borrowing more money

• Cutting government spending

• Asking the wealthiest Americans to pay more

• Increasing sales taxes

How many Americans would benefit from the proposed tax relief?

• About 300,000

• 160 million

• Over a million

• Less than 100,000

What is a key argument against complicating the extension of the payroll tax cut?

• It could set back middle-class families

• It might reduce government revenue too much

• It could lead to inflation

• It might not be effective

Match the following

• Tax paid on items you buy

• Income Tax

• tax on money earned from a job

• Property Tax

• Tax paid on property you own

• Sales Tax

This kind of tax is added to a purchase you make at a store.

• Sales Tax

• Income Tax

• Property Tax

• Excise Tax