2.02 I can understand taxes

Chad Leonard

Income Tax is a tax on earned and unearned income

Earned income- Money earned from working for pay. Example: wages, salaries

Unearned income- income received from sources other than employment. Example: Interest

Excise Tax, Taxes collected from the seller and retailer and such often remain hidden in the price of the produce or service

Purchase of certain items. Example: Gas, Hotel rooms Airline tickets

Anyone who purchases certain items that are charged an excise tax, excise taxes charged vary by location

Expenses of state and local governments.