12.2 Types of Taxes

Sales tax

Personal income tax

Corporate tax

Property tax

Federal Reserve

Internal Revenue Service (IRS)

Department of Commerce

Social Security Administration

Tax rate increases as income increases

Tax rate is the same for all income levels

Places a higher tax burden on people with higher incomes

Places a higher tax burden on people with lower incomes

corporate tax

income tax

Social Security collected through payroll tax

Medicare collected through payroll tax

Prepared foods from a restaurant

Cereal and vegetables

Used video game from a store

Electronics

Employers and employees each pay a Social Security tax of up to 6.2 percent of an employee's income.

Purchases made in the state of Ohio require a tax payment of 5.75 cents for every dollar.

People who live in the municipality of Hanover, Pennsylvania pay a 1 percent local income tax.

Owners of very heavy vehicles, such as tractor-trailers, must pay a federal tax of at least $100 each year they use the vehicle.

purchasing an additional car

renting an apartment

renovating a house they own, increasing its value

purchasing their first house