Tax Basics

This tax helps fund the basic retirement program run by the federal government.

• Social Security Tax

• Property Tax

• Medicare Tax

• Sales Tax

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: _______ Tax is levied on the ownership of property.

• Payroll

• Excise

• Property

• Income

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

According to the flowchart, taxpayers work as a voting group to elect representatives who will ________.

• Lower taxes

• Represent the majority

• Increase public spending

• Reduce government size

What is the primary purpose of income tax?

• To fund public services and government operations

• To encourage savings among citizens

• To penalize high earners

• To support international trade

Which type of tax is directly deducted from an employee's paycheck?

• Sales Tax

• Income Tax

• Payroll Tax

• Property Tax

What is a progressive tax system?

• A tax system where everyone pays the same percentage

• A tax system where tax rate increases as income increases

• A tax system where tax rate decreases as income increases

• A tax system with no taxes

Which tax is typically used to fund local schools and infrastructure?

• Sales Tax

• Property Tax

• Income Tax

• Excise Tax