WOW VIII

Personal FinanceTaxes

Why do we have to pay Taxes??

• To pay for Government

Services such as:

• Roads, National

Defense, Schools, Law

Enforcement, Fire

Protection, …

Types of Taxes

• Federal: Payroll, Social

Security

• State: Payroll, Sales (not

OR), Property, Estate,

Fuel, Business, DMV.

• Local: Property, Fees,

Parking.

Tax Collectors

• Federal: Internal Revenue

Service

• State: Oregon Department

of Revenue.

• Local: Cities, Counties,

Businesses, DMV.

Social Security

• Created by F.D.R. in 1935

• Intended to help retirees

and their spouses

• Currently 6.2% of Gross

Income

•

Income Tax

• Federal and State are paid

on a sliding scale based

upon Gross annual

income.

Sales Tax

• Outside of Oregon, a flat

percentage added to total

of retail sales, collected by

the retailer and ‘passed

through’ to the state.

• CA is 7.5%, WA is 6.5%

Property Tax

• Collected from Property

Owners by various

governments which have

jurisdiction over the region.

• Typically pays for local

government activity,

including education.

Dependent• A person whose financial

responsibility is held by the

taxpayer. Typically a child

or a disabled or elderly

relative.

• Taxpayer receives a

deduction on their taxes for

dependents.