The Mathematics of Money

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Learning Objectives

LO 1 Calculate the sales tax due on purchases.

LO 2 Determine the price before sales tax, given the

price including tax.

LO 3 Understand the structure of U.S. income taxes,

and calculate total income taxes owed.

LO 4 Calculate federal income tax withholding and

FICA for payroll deductions.

LO 5 Calculate the tax due on a property, given the

assessed value and tax rate.

LO 6 Understand the role of assessment in determin-

ing the tax due on a property, and be able to

compare tax levels in jurisdictions using differ-

ent assessment rates.

LO 7 Calculate tax rates based on total tax levy and

total assessment.

LO 8 Be familiar with and able to compute various

types of excise taxes.

LO 9 Be familiar with the current structure and recent

changes in the federal estate tax, and be able

to calculate the tax due on a given estate.

Chapter Outline

9.1 Sales Taxes

9.2 Income and Payroll Taxes

9.3 Property Taxes

9.4 Other Taxes

Taxes

“Giving money and power to government

is like giving whiskey and car keys to

teenage boys.”

—P. J. O’Rourke, “Parliament of Whores”

CHAPTER

9