Paying Taxes Answers

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Which statements about sales taxes are true? Check all that apply. They are collected by state and local governmentsThe tax rate changes from state to state and city to city.Failure to pay sales tax can result in the government seizing the property. The more something costs, the greater the dollar amount paid in sales tax. Sales taxes are taxes on purchased goods.

A
They are collected by state and local governments
B
The tax rate changes from state to state and city to city.
C
Failure to pay sales tax can result in the government seizing the property.
D
The more something costs, the greater the dollar amount paid in sales tax.
E
Sales taxes are taxes on purchased goods.
3

How is gross income different from net income?

A
Gross income and net income include all the money you have made.
B
Gross income and net income are the same, except net income is only reported on tax forms.
C
Gross income is how much money you want to make, while net income is your taxable income.
D
Gross income is how much money you make, while net income is your gross income minus deductions.
4

Income taxes are taxes that are paid on

A
any financial gain.
B
purchased goods.
C
homes, land, or property.
D
special goods and activities.
5

A federal income tax exists to provide revenue for

A
schools and other services.
B
state governments.
C
local governments.
D
the US government.
6

At tax season, an individual who has withheld too little in taxes can expect

p
prosecution by the IRS.
a
a heavy refund.
a
additional withholdings.
a
a large tax bill.
8

Why does an excise tax on gasoline exist? Check all that apply.

A
to make gasoline prices more competitive
B
to provide funding for healthcare services and education
C
to discourage travel by automobile by making gasoline more expensive
D
to fund highway repairs and other special projects
E
to discourage the use of alternative modes of transportation
10

Van and her brother Trung both own homes valued at $175,000. Both pay property taxes at 1.25% and pay annual taxes of $2,187.50. They live in different neighborhoods. Van’s property value is expected to increase by 5% next year.Trung’s property value is expected to increase by 3%.How will these changes affect their property taxes? Check all that apply.Van’s property tax will increase.Trung’s property tax will be less than Van’s.Trung’s property tax will decrease compared to Van’s.Van’s property tax will be less than Trung’s. Trung’s property tax will increase.

A
Van’s property tax will increase.
B
Trung’s property tax will be less than Van’s.
C
Trung’s property tax will decrease compared to Van’s.
D
Van’s property tax will be less than Trung’s.
E
Trung’s property tax will increase.

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