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A. Which Tax Is It? Match each scenario with the tax it is describing. 1) Yvonne buys gloves that cost...

A. Which Tax Is It? Match each scenario with the tax it is describing.
1) Yvonne buys gloves that cost $10.00. At the register, she must pay $10.80.
2) Sasha bought a townhouse last year. She just got a tax bill from the county showing the value of her house and the amount of tax she owes.
3) Bigmart sells boots that are made in China and boots made in the U.S. Bigmart must pay 27% tax on each pair made in China, but not on the U.S.-made pairs.
4) State citizens voted to add a 75-cent tax to each pack of cigarettes to pay for programs to help people quit smoking.
5) Jake got his paycheck today. He worked 40 hours at $20 per hour. His gross pay was $800, but the amount of his paycheck was only $623.15.
6) Clyde Cash owned two houses, three office buildings, a Bugatti Veyron, antiques, stocks, and a jet, all worth $25 million. He passed away. His heirs owe the government $9 million in taxes.

Answer

  1. Sales Tax: Yvonne buys gloves that cost $10.00. At the register, she must pay $10.80.
  2. Property Tax: Sasha bought a townhouse last year. She just got a tax bill from the county showing the value of her house and the amount of tax she owes.
  3. Tariff: Bigmart sells boots that are made in China and boots made in the U.S. Bigmart must pay 27% tax on each pair made in China, but not on the U.S.-made pairs.
  4. Excise Tax: State citizens voted to add a 75-cent tax to each pack of cigarettes to pay for programs to help people quit smoking.
  5. Income/Social Security/Medicare Taxes: Jake got his paycheck today. He worked 40 hours at $20 per hour. His gross pay was $800, but the amount of his paycheck was only $623.15.
  6. Estate Tax: Clyde Cash owned two houses, three office buildings, a Bugatti Veyron, antiques, stocks, and a jet, all worth $25 million. He passed away. His heirs owe the government $9 million in taxes.

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