Match each type of tax with the correct description.

federal income tax

collected from citizens in most states

Medicare tax

Medicare tax

collected by towns and cities to fund city

programs

state income tax

used to financially support retired people

and people with disabilities

Social Security tax

collected from most citizens, who pay up to

39.6 percent of their earnings

local income tax

used to support healthcare costs for retirees

Tax is a compulsory contribution levied by the government on income earners and the profits of those in business in order to raise funds for public expenditures. It comes in various forms as listed.

Federal income tax : Collected from citizens who pay up to 39.6% of their earnings

Medicare Tax: Used to support health care costs for retiree

State income tax : Collected from citizens in most state

Social security tax: Used to financially support retired people and people with disabilities

Local income tax: Collected by towns and cities to fund city program