2.02 I can understand taxes

Ashlyn Austin

Income Tax

Define Income Tax: is a tax on earned and unearned income.

Why are they collected?: Helps fund operations of federal government, goes to education, and state highways.

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Excise Tax

Excise tax?: Taxes collected from the seller or retailer and as such often remain "hidden" in the price of a product or service, rather than being listed separately

Why collected?: expenses of state and local governments as well.

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