Types of Taxes

A tax imposed on the sale of goods and services, typically calculated as a percentage of the purchase price.

A tax levied on the income earned by individuals and businesses, usually calculated as a percentage of the income.

A tax that employers withhold from employees' wages to fund social security and Medicare.

A tax based on the value of owned property, typically assessed by local governments.

A tax system where the tax rate increases as the taxable amount increases, meaning higher earners pay a higher percentage.

A tax system where the tax rate decreases as the taxable amount increases, meaning lower earners pay a higher percentage of their income.

A tax system where the tax rate remains constant regardless of the amount subject to tax.

Taxes reduce the amount of money an employee receives in their paycheck, resulting in lower take-home pay.

Final cost = $850 + ($850 * 0.11) = $943.50.

To fund government services and programs, including education, infrastructure, and public safety.