U1 - Taxes

Why does your employer withhold taxes from your paycheck?

• To pay your share of payroll taxes

• To save money for you

• To increase your salary

• To pay for your health insurance

Who benefits from the goods and services provided by payroll taxes?

• U.S. citizens

• Foreign tourists

• Private corporations

• State governments only

Which of the following is not a purpose of payroll taxes?

• Funding private companies

• Providing goods and services for U.S. citizens

• Supporting government programs

• Ensuring public welfare

Which of the following is a type of tax withheld from paychecks?

• Income tax

• Sales tax

• Luxury tax

• Estate tax

What does FICA stand for in the context of taxes?

• Federal Insurance Contributions Act

• Federal Income Contributions Act

• Federal Internal Contributions Act

• Federal Investment Contributions Act

Which of the following is not a type of income tax?

• Federal Income Taxes

• State Income Taxes

• Social Security

• Local Income Taxes

What is the role of Medicare taxes?

• To fund education

• To provide healthcare for seniors

• To support military expenses

• To build infrastructure

How is the amount paid in federal income tax calculated?

• As a fixed amount

• As a percentage of a worker's income

• Based on age

• Based on the number of dependents

What is one type of tax that some states do not have?

• Sales tax

• Property tax

• State income tax

• Federal tax

What is another service provided by states using tax revenue?

• Transportation

• Personal shopping

• Private security

• International flights