Module 4: Taxes Summary

Taxes are a part of life that can’t be ignored. You now have a basic understanding of why you pay taxes, what types of taxes exist, and how to file your own tax returns. Some of the main points you may want to remember:

• We all utilize public goods. The taxes collected by the U.S. Federal Government, as well as those collected by state and local governments, help provide us with needed and wanted resources called public goods.
• The progressive tax system used in the U.S. collects a larger percentage of taxes from those who make more money.
• Your gross pay is not the same as your "take home" or net pay. Many mandatory deductions, such as federal taxes, state taxes, Social Security, and Medicare, reduce your gross pay. You may choose additional deductions, which further reduce your gross pay.
• As its name implies, the 1040EZ is the shortest and easiest tax form to complete.

Extend Your Learning

Take a moment to review the Taxes Opinion Poll you collected at the beginning of this module. Now that you have a better understanding of taxes, whose opinions do you agree with and whose do you disagree with? Why? Discuss your findings with a coursemate.