Use the slides to help you fill in the blanks.
What are taxes?
Taxes are to the national, state and local revenue. Taxes are collected by the on worker's income and business profit or directly added to the cost of some goods and services.
Where does the tax money go?
- schools & libraries
- roadways, mass transit, airports
- police and fire
- hospitals, medical research
services
services
What are the six types of taxes?
* Sales Tax: Money paid on certain and varies by state and county. The base sales tax for Illinois is .Chicago's sales tax is .
* Excise Tax: Imposed to discourage the use of goods and services that could pose a. Examples are alcohol, cigarettes, tanning beds ...
* Gift Tax: Gifting someone a large sum of money of or above will incur a gift tax that the has to pay.
* Property tax: is the main source of funding for governments and . It's a of how much your property is worth.
* Interest income tax: is a tax on from savings accounts and investments (stocks, bonds, etc.). It's reported with a form to the government by your bank.
* Payroll taxes: money taken out of your and sent to the by your employer.
Why are payroll taxes withheld from each paycheck? to support the government and to pay for government services.
What happens if payroll taxes were not withheld (taken out) from each paycheck? it would be difficult to save enough money each year to pay your taxes when there due.
FICA stand for. It funds by withholding (taking out) 6.2% of each employee's pay stub. FICA also funds by withholding (taking out)1.45% of each employee's pay stub.
What are the three tax systems?
Progressive Tax: The money you make, the you pay in taxes. Federal income tax is an example of a progressive tax.
Regressive Tax:Tax that claims a percentage of money from people of incomes than those of higher incomes. Sales tax is an example of a regressive tax.
Proportional Tax:
Tax that claims the percentage of income from people regardless of their income.
Illinois income tax (4.95%) is an example.
The IRS stands for .
Their job is to .
Voluntary compliance: it is the responsibility to report all income. This means you are responsible for .
Tax is the failure to report some or all of your income. It is illegal.