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Taxation

Total questions: 20

Worksheet time: 16mins

Name
Class
Date
1.

What are taxes?

a)

the amount of money citizens and businesses charge the government so they can pay all their bills.

b)

the amount of money citizens and businesses are required to pay so the government can function and provide services.

c)

the amount of money citizens and businesses are required to pay so they are protected from criminal organizations.

d)

the amount of money citizens and businesses pay the government because it makes them happy.

2.

All of the following are government services EXCEPT

a)

Food Inspectors

b)

FBI

c)

Public schools

d)

Farms

3.

Who is the biggest employer in the nation?

a)

Amazon

b)

Google

c)

The Federal Government

d)

Ford Motor Company

4.

Sales tax is the tax you pay

a)

when you buy something.

b)

when you sell something.

c)

when you barter.

d)

when you give something as a gift.

5.

Sales tax on an item may include all of the following EXCEPT

a)

city sales tax

b)

county sales tax

c)

state sales tax

d)

household sales tax

6.

Not everything is taxed at the same rate. In many states, ___________ are exempt from sales tax.

a)

Clothing

b)

Groceries

c)

Toys

d)

Shoes

7.

An excise tax is often called a "hidden" tax because

a)

sellers cut out the tax altogether.

b)

buyers exercise their right to purchase the product.

c)

buyers hide the products in their cart.

d)

sellers usually include the amount of the tax in the price of the item.

8.

Income tax is the tax you pay on money you receive from all of the following sources EXCEPT

a)

your job

b)

rent from tenants

c)

gifts you receive from your friends and relatives

d)

earnings on investments like stocks

9.

Business and people pay income taxes. Both are

a)

regressive taxes

b)

progressive taxes

c)

proportional taxes

d)

personal taxes

10.

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

a)

Social Security Tax

b)

Property Tax

c)

Medicare Tax

d)

Sales Tax

11.

During your working years, social security tax takes a percentage of your earnings. Then when you retire or are disabled

a)

your social security tax is used to pay medical costs.

b)

you become eligible to receive monthly payments.

c)

you lose your benefits.

d)

you can leave your Social Security benefits to your loved ones when you die.

12.

Medicare is a tax taken out of your paycheck and is

a)

the federal government's retirement program.

b)

the federal government's elder care institution.

c)

the federal government's health care system for people age 65 and over.

d)

a really poor substitute for private health insurance.

13.

Money that the government collects from people and businesses is called a _____________.

a)

Income

b)

Tax

c)

charge

d)

estate

14.

This kind of tax is added to a purchase you make at a store.

a)

Sales Tax

b)

Income Tax

c)

Property Tax

d)

Excise Tax

15.

If sales tax is 10 percent, and a new pair of sneakers costs $70, how much do you actually have to pay?

a)

$77

b)

$71

c)

$80

d)

$100

16.

Which is true?

a)

The less you make, the more you get taxed.

b)

The more you make, the higher percentage tax is taken out.

c)

The more you make the lower you get taxed.

d)

If you are cool, you don't get taxed at all.

17.

What tax comes out of paychecks and pays for medical care for people 65 and older?

a)

Social Security

b)

Property

c)

Income

d)

Medicare

18.

What taxes come out of a person's paycheck and pay for a retirement program for older people?

a)

Sales Tax

b)

Social Security Tax

c)

Property Tax

d)

Medicare Tax

19.

Under a progressive income tax, who would pay the largest proportion of her income in taxes?

a)

A schoolteacher

b)

The owner of a small business

c)

A millionaire

d)

A student on financial aid

20.

Travis county charges tax each year on the house that Jennifer owns. She pays around $6,500 in taxes each year on the house that she owns. What type of tax is this?

a)

Estate Tax

b)

Sales Tax

c)

Income Tax

d)

Property Tax