Analyzing Tax Worksheet.

POS-301: Analyzing Tax Worksheet Former Supreme Court Chief Justice John Marshall once stated, "The power to tax is the power to destroy." The power to tax, the principle of taxation, and the effect taxes have on citizens have existed since the inception of America itself. However, much of it is misunderstood. Use the sample property tax bill, pay stub, utility bill, and sales tax receipt provided below to complete the Analyzing Tax Worksheet. Sample Pay Stub Sample Sales Receipt Sample Utility Bill Sample Property Tax Statement Complete all five parts of the worksheet. Part One: Income Tax Use the sample pay stub provided to fill out the table below. Who Determines the Amount of Tax? Services the Tax is Applied Towards Federal Tax Federal government National defense, social programs, and infrastructure State Tax State government Education, state infrastructure, and public safety Social Security Tax According to the Federal Insurance Contributions Act (FICA) (26 U.S.C. §§ 3101–3128), the federal government determines the amount of social security tax. Retirement benefits for older adults and disability insurance (Federal Insurance Contributions Act (FICA) (26 U.S.C. §§ 3101–3128)). Medicare Tax According to the Federal Insurance Contributions Act (FICA) (26 U.S.C. §§ 3101–3128), the federal government determines the Medicare tax. Healthcare services for older adults (Federal Insurance Contributions Act (FICA) (26 U.S.C. §§ 3101–3128)). Other (Please specify) N/A N/A Part Two: Sales Tax Use the sample sales receipt provided to answer the questions below. 1 List all the taxes (percent, amount, etc.) on the receipt. The total tax equals seven cents ($0.07), about 0.8% of the subtotal $8.99 for a laptop. 2 Who determines the amount of each tax? The state government can usually set the sales tax rate (Arizona Revised Statutes, Title 42, Chapter 5). 3 Where does revenue from this tax go? What does it fund? The sales tax revenue is therefore utilized to support state-based activities such as education, the construction of transport systems, and healthcare services (Arizona Revised Statutes, Title 42, Chapter 5). Part Three: Utility Tax Use the sample utilit...