1.3 Quiz Review

What kind of tax is on basic purchases like food, water, gas, concerts, etc.

• Payroll taxes
• Income taxes
• Property taxes
• Sales tax

What kind of tax system is used for U.S. Federal Income Tax?

• Progressive
• Regressive
• Proportional
• It depends on the job you have

These taxes are the main source of revenue for local governments.

• Payroll taxes
• Income taxes
• Property taxes
• Sales tax

If you are self-employed, YOU have to pay the employer's portion of taxes.

• TRUE

• FALSE

• It depends

If the sales tax on a $120 purchase at a store is $5.40, what percentage of the purchase price is the sales tax?

• 4.50%

• 4.75%

• 4.80%

• 4.85%

Jolene lives in Maryland where sales tax is 6%. She went to the store and spent $75 but her sales tax was less than 6% of the total. What is the likely reason her sales tax was NOT $4.50 (6% of 75)?

• She pays less sales tax because she makes less money.
• Some of the items, like groceries, are tax exempt.
• They calculated the sales tax incorrectly.
• The cashier has a crush on her so charged her less sales tax.

With some taxes, poor families pay more as a share of their income than the well-off families. One example is sales tax. This happens with:

• a progressive tax
• a proportional tax
• a regressive tax
• a nominal tax

Which is an example of earned income:

• Money you received for babysitting a neighbor's dog
• Money from selling some of your stocks
• A check from your grandmother for your birthday
• Interest earned on your money in your savings account

You pay 6.2% in taxes to Social Security and 1.45% in taxes to Medicare. Your employer matches these rates.

If you earned $45,689 in a year, how much would your employer owe to social security (FICA) for the year?

You pay 6.2% in taxes to Social Security and 1.45% in taxes to Medicare. Your employer matches these rates.

Last pay period you worked 37.5 hours at a rate of $15.50 per hour. How much is your take-home (net) pay for the pay period (assume no other deductions besides these taxes).