Name____________________
American Government
Date_____________________
Note sheet-Taxes
I.
General Overview

Governments need ___________________________ to carry out their activities

Government is required to follow a budget that balances money taken in by the
government (revenue) _________________________________________ (expenditures)

A _______________is money paid by individuals, businesses, and organizations to
_________________ the government

Americans pay a variety of different __________________________
II.
About Taxes

The federal government require employers to take money for income taxes from the
paychecks of their _________________________________(payroll deductions)

___________________________turn the tax money over to the government

Taxpayers report his/her income on an ___________________________ form every
year on or before April 15

Taxpayers take deductions from income:

Examples: home mortgage payments, interest paid on bank loans, large medical
expenses…

Issue a refund if the income on which the person pays taxes is _____________________
III.



Types of Taxes
____________________: this is a tax that does not change with a person’s ability to pay
the tax
_____________________: the percentage rate stays the same regardless of how much
you earn (dollar amount will increase as your salary increases)
_____________________: the percentage rate increases as the person’s income
increases-people with higher incomes are expected to pay a higher percentage rate in
taxes
IV.


V.
Federal Taxes

________________________: levied on most sources of income and/or corporations

________________________: taxes are places on wages and salaries

__________________ is collected from property left behind by those that have died
VI.
VII.
Democrats vs. Republicans
_________________-favor a tax system that is significantly progressive
_________________- favor a tax system that is proportional or even regressive
State and Local Taxes

_________________: a tax levied on the yearly earnings of ______________________

_________________: a tax places on the sale of various items it is paid by the
purchaser.

_________________: a tax levied on the assessed value of a property that you own.
(Largest source of income for local governments)

__________________: are charges from a specific government agency for things such as
court fines, hunting and fishing licenses, car registration…ect.

__________________: this is a generally a state tax paid on the specific items that a
person inherits.

__________________: a selective sales tax levied specifically on activities for
entertainment (movie tickets, concert tickets and sporting events).
About Taxes:
Summarize the slide: