1) List and describe the four major categories of taxes.

2) For each of the following situations, list the type of tax that is being described.

Financial planning situation

(a) A tax on the value of a person’s house.

(b) The additional charge for gasoline and air travel.

(c) Payroll deductions for federal government retirement benefits.

(d) Amount owed property received from a deceased person.

(e) Payroll deductions for a direct tax on earnings.

3) What factors might be considered when creating a tax that is considered fair by most people in a society?