Taxes Revision Exam Questions With Guaranteed Pass Solutions.

Income Tax - Answer Taxes paid by employees to federal and state government. Collected or withheld from one's paycheck. Payroll Tax - Answer Federal and state taxes that all employers must pay, based on a percentage of the employee's salary. They go to such things as Social Security and Medicare/Medicaid. Corporate Income Tax - Answer A percentage of profits paid by a business to the federal and state government. Excise Tax - Answer A tax paid on purchases of a specific good, like gasoline. Estate Tax - Answer A tax on property (cash, real estate, stock, or other assets) transferred from deceased persons to their heirs. Social Security - Answer A program that provides monthly benefits to almost 60 million Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals. Medicare - Answer A government-run insurance program that provides healthcare assistance to elderly Americans. Medicaid - Answer A government-run insurance program that provides healthcare assistance to poor Americans. "Safety Net" Programs - Answer A variety of government programs that benefit individuals and families with low incomes. These include food stamps, education assistance (grants and loans), housing vouchers, tax credits, job training, child care and more. Mandatory Spending - Answer Spending by the federal government required by previously existing laws. This includes funding programs like Social Security and Medicare/Medicaid. Discretionary Spending - Answer Spending by the federal government determined by legislative action. In other words, spending approved through votes by elected officials (i.e. Congress).