Teen Finance- Taxes

where the federal government gets their money

Taxes. Without taxes, out government couldn't run some very important programs that help people.

budget

A plan for how money is earned and spent.

federal budget

A plan for how the government brings in and spends revenue.

corporate income tax

Just like the personal income tax, corporations must pay income taxes.

how the federal budget is spent

National Defense, Social Security, Income Security, Medicare, Health, Other Spending

deficit

The government spends MORE than it raises in taxes so that it must borrow money. (-)

surplus

The government spends less than it raises in taxes so that there is money left over. (+)

revenue

The money that the government runs on is raise through taxes.

excise tax

These are taxes paid on certain goods like, alcohol, cigarettes, jewelry, and gas.

other taxes

This includes estate taxes (when someone dies) and taxes on good brought from other countries (tariffs).

income tax

This tax is based on a percentage of what you make. The more you make, the higher percentage you pay.

social security

This tax is taken to provide retired people with income they need.