Taxes

Question 1

Taxes

Answer 1

a fee charges by the government on a product, income, or activity

Question 2

Income Taxes

Answer 2

comes out of the paycheck –> goes to the Fed gov

Question 3

Property Taxes

Answer 3

paid by anyone who owns a property –> goes to state or local (firefighters, police, mayor) gov –> In NJ, it goes to the local gov

Question 4

Sales Tax

Answer 4

taxes on goods/items –> goes to state gov
NJ’s #1 source of revenue, is 6.625% in NJ

Question 5

Inheritance or Estate Taxes

Answer 5

happens bc of a death, you only have to pay if you are inheriting a large amount of money –> goes to the Fed gov

Question 6

Excise Taxes

Answer 6

taxes on “sinful” products like alcohol (is excise taxed in ALL states) –> goes to Fed gov
In NJ: cigarretes, gas, cell phone service plans

Question 7

Which taxes go to the federal government?

Answer 7

Income taxes, Inheritance/Estate Taxes, and Excise Taxes

Question 8

What type of tax system does the US have? Define it.

Answer 8

We have a Progressive Tax System, meaning that richer people pay more taxes.

Question 9

Define a flat tax system:

Answer 9

when the same tax rate applies to all levels of income (Elon Musk and ur mom both be getting taxed 5%)