Income and Taxes

Why is your paycheck lower than the total salary you earned?

• Your employer keeps a portion

• Taxes and deductions are removed

• You spend money before receiving it

• The government decides how much you get

What type of tax is directly taken from your paycheck?

• Sales tax

• Property tax

• Income tax

• Road tax

Social Security helps provide financial assistance for:

• The elderly and disabled

• College students

• The unemployed

• Business owners

Medicare is a government program that provides:

• Free education

• Healthcare for the elderly

• Housing assistance

• Extra wages for workers

Which of the following is an example of a mandatory deduction from a paycheck?

• Sales tax

• Income tax

What happens to the money deducted from your paycheck?

• It goes into your employer’s bank account

• It is returned to you later

• It is used for government services

• It disappears without explanation

Social Security taxes are collected to:

• Fund the military

• Provide financial support for retirees

• Pay for property tax

• Lower cost of living

If Medicare taxes were removed, what might happen?

• The elderly may struggle with healthcare costs

• Workers would lose their jobs

• People would pay higher sales taxes

• The price of homes would drop

Which tax is automatically deducted from your paycheck to fund retirement programs?

• Property tax

• Social Security tax

• Sales tax

• Government service tax

What do people call the amount of money they actually take home after taxes?