Taxes
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
Progressive Taxes
the more income or profit a person or company has, the higher tax rate they pay
Social Security
Social security - basic retirement program run by the federal government.
- People who become disabled become eligible as well
Medicare Tax
the federal government's health care system for people age 65 and over
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
Property tax
taxes people pay on land they own
Estate tax
tax that the government collects when a person dies (also called the death tax)
Tariffs
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)