Reading: What are Taxes?

Business Management for Every Enterprise

Unit 6

Taxes

What are Taxes?

Taxes are a sum of demanded by a government to support the government itself as well as specific facilities or services.

Paid by taxpayers – a person who pays a tax to national, state, county, or municipal (city/town) governments.

Community

What are the Benefits of Being Apart of These Communities?

You are Better Being in Community Than By Yourself

How Do You Benefit from Taxes

Make a list of things you use or benefit from that were funded, at least in part, by taxes.

How do these items contribute to your well-being?

What would you do if you didn’t have these items?

How Do Taxpayers Pay Taxes?

Income Tax

Components of Income Tax

Federal Income Tax

State Income Tax

Payroll Tax

What is Social Security?

Purpose

Income for:
- Retirees
- People with profound disability
- Children who have lost a parent
- A person with children who has experienced a death of a spouse

Tax Charged

6.2% of earned income (decreased to 4.2% for 2011-12)

Up to an annual maximum

What is Medicare?

Purpose

Helps pay for health care for senior citizens

Tax Charged

1.45% of earned income

Employers also Pay Social Security and Medicare 

Match their employees tax contributors

Self-employed people pay both the employee and employer cotributions