Matching Types of Taxes Introduction: Match the example on the left with the type of tax that best fits on the right.
Tax paid annually on earnings each April
Tarifi
Tax paid by a company to sell goods
from Spain in the United States
X
Payroll tax
Tax paid by employees for
Social Security and other programs
x
Excise tax
Tax meant to discourage the purchase
of a product
X
Income Tax

Tax paid annually on earnings each April - Income Tax

An Income tax, as the name implies, is simply a tax on income: the earnings an individual or corporation obtain in a specific period of time, usually a year for tax calculation purposes. For this reason, there are both personal income taxes and corporate income taxes.

Tax paid by a company to sell goods  from Spain in the United States - Tariff

A tariff is simply a tax on imported goods. They are mainly used to protect domestic producers from foreign competition.

Tax paid by employees for  Social Security and other programs - Payroll Tax

A payroll tax is tax on the wage of an employee, and is usually charged each time the employee is paid. Social Security taxes are perhaps the most common example of a payroll tax in the United States.

Tax meant to discourage the purchase  of a product - Excise Tax

An Excise Tax is a specific tax on a product, with the goal of reducing the consumption of that product. A common excise tax is the tax on tobacco, imposed because of the adverse health effects of smoking tobacco.

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