2.02 I can understand taxes
Juan Marmolejo
What are Taxes? And why are they collected?
Taxes are a sum of money demanded by the government to support the government itself. Tax money is collected for government building or places like parks. Tax money also goes to programs like Medicare or Social Security.
Payroll Tax
Payroll is a tax on earned income that supports the Social Security and Medicare programs. It is paid by individuals who earn income from working for employees.
Sales Tax
Sales tax is an added percentage to original price of an item. Basically when someone purchases something they are charged a little more for sales tax.
Excise Tax
Excise tax comes from purchases of certain items like gas, Airplane tickets, Hotel rooms, and alcohol. It also remains hidden in the price of a product or service.
Income Tax
Income tax is money earned from working for pay or wages and salaries. It is a tax on earned and unearned income.
Property Tax
Property tax is determined by the percentage of the property value. And this tax can be charged on land, buildings and cars.