Mr. Lee The Basics of Taxes

What is the definition of taxes?

• A voluntary donation to the government

• A sum of money demanded by a government to support itself and specific facilities or services

• A fee for using public transport

• A charge for private services.

Taxes are a sum of money demanded by a government to support the government itself as well as specific facilities or ______.

• Products

• Services

• Goods

• Events

Fill in the blank: A community is a group of people with common interests and concern for the ________.

• individual success

• common good

• financial gain

• entertainment

Fill in the blank: _______ Tax is levied on the ownership of property.

• Payroll

• Excise

• Property

• Income

Fill in the blank: Federal income tax + State income tax = ________.

• Property tax

• Sales tax

• Income tax

• Corporate tax

What is payroll tax?

• A tax on earned income that supports the Social Security and Medicare programs

• A tax on goods and services

• A tax on property

• A tax on luxury items.

The tax charged for Medicare is ________ of earned income.

• 1.00%

• 1.45%

• 2.50%

• 3.00%

Medicare helps pay for health care for ________.

• children

• senior citizens

• unemployed individuals

• students

What is the total amount paid in payroll taxes to the federal government by both the employee and employer?

• $100

• $150

• $200

• $250

Which tax funds many different operations and programs of the federal government?

• Income Tax

• Payroll Tax

• Both A and B

• None of the above