Basics of Taxes

What are taxes?

• Voluntary donations to the government

• Required payments to governments for public goods and services

• Payments made to private companies for services

• Optional fees for community events

Who is responsible for paying taxes if you are self-employed?

• The employer

• The government

• The self-employed individual

• The client's company

What form do employees complete to estimate payroll and income tax deductions?

• Form W-2

• Form W-4

• Form 1040

• Form 1099

What is a sales tax based on?

• Income level

• Property value

• Retail product percentage

• Estate value

What is a tariff?

• A tax on income

• A tax on domestic goods

• A tax on imported products

• A tax on services

What is an example of a regressive tax?

• Income tax

• Estate tax

• Sales tax

• Property tax

What is the effect of tariffs on consumers?

• Decrease in product prices

• Increase in product prices

• No effect on product prices

• Stabilization of product prices

What varies depending on the state regarding taxes?

• Income tax, sales tax, and property tax

• Federal tax rates

• National defense spending

• Medicare benefits

Which level of government uses taxes for social programs for the poor and elderly?

• State and Local

• Federal only

• Local only

• State only

What is a characteristic of local taxes?

• They vary depending on the local government

• They are uniform across all localities

• They are only used for federal programs

• They are only used for state programs