Income tax

Tax you pay on money you receive from various sources

Banks pay interest on money you keep in a savings account

Investing money in stocks

  • All of this income is taxable
  • Federal income tax forms are due every year by April 15th
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Progressive Taxes

the more income or profit a person or company has, the higher tax rate they pay

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Social Security

Social security - basic retirement program run by the federal government.

  • People who become disabled become eligible as well
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Medicare Tax

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

Only applies to certain products

  • Usually imposed on items such as alcohol and tobacco
  • Federal level - gasoline, air transportation, fishing equipment, indoor tanning
  • Tax is not listed on the receipt

Hidden tax

Is a tax when a seller owns to the government

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Property tax

taxes people pay on land they own
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Estate tax

tax that the government collects when a person dies (also called the death tax)
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taxes on goods that are imported to the US from other countries (purpose of this tax is so that the US can compete with foreign countries)
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