Question

the primary way governments pay for payments that governments collect from residents. read the passage about taxes. then follow the instructions below.
income taxes are one of the most important forms of taxation in the united states. individual income taxes are yearly payments to the government based on how much money someone makes. the federal government, most state governments, and some local governments collect income taxes. income includes salary or wages from a job, interest from money in the bank, profits from a self - owned business, or money from stock market investments. all this income is taxable, meaning that people must report it to the government and pay taxes on it.
income taxes are calculated as a percentage of total income earned each year. so, people who earn more money generally pay more in taxes.
which of the following statements accurately describe how individual income taxes work?
select all that apply.
people have to report all of their income to the government.
people who earn less money generally pay less in income taxes.
income taxes apply only to money that people make at their jobs.
only the federal government collects income taxes.

Explanation:

1. The passage states all taxable income (including salary, bank interest, business profits, stock earnings) must be reported to the government, so the first statement is correct.
2. The text notes income taxes are a percentage of total income, so those who earn less generally pay less, making the second statement accurate.
3. The passage clarifies income taxes apply to more than just job wages, so the third statement is wrong.
4. It specifies federal, most state, and some local governments collect income taxes, so the fourth statement is incorrect.

Answer:

• People have to report all of their income to the government.
• People who earn less money generally pay less in income taxes.