4. Taxes Flashcards
Income tax
A tax on people’s earnings
Sales tax
A tax on a sale of merchandise or services.
Excise tax
Consumer tax on a specific kind of merchandise, such as tobacco.
Payroll tax
a tax that removes money directly from workers’ paychecks
Property tax
tax on tangible and intangible possessions such as real estate, buildings, furniture, stocks, bonds, and bank accounts.
Main types of property tax
- Real Estate Tax
2. Personal Property Tax
Example of real estate tax
Tax on Houses, Lands.
Example of personal property tax
Tax on Cars, Boats.
Estate tax
A tax on the estate, or total value of the money and property, of a person who has died.
Inheritance tax
This is a tax one would pay on their parents or grandparents’ money after they die
Gift tax
a tax on money or property that one living person gives to another.
Public goods
Goods and services, provided by the government, that provide benefits to more than one person at a time (non-excludable), and their use cannot be restricted to only those people who have paid to use them (non-rival consumption)
Gross pay
The total salary before any taxes and other withholdings are deducted from the paycheck.
Net pay
The income that an employee would receive after the possible deductions have been made.
W-4 Form
A federal income tax document that instructs an employer about how much money to withhold from an employee’s paycheck for tax purposes.
