Chapter 6 Flashcards
What is Medicare?
Federal health insurance for anyone age 65 and older
What is Medicaid?
Medicaid is the nation’s public health insurance program for people with low income
When was medicare introduced?
1965
What is the Medicare tax percent?
Total=2.9%
1.45% from the employer and 1.45% from the employee
What are the three types of taxes?
proportional (flat rate taxation), regressive, &progressive
Proportional (flat rate taxation)
everyone is taxed the same
Regressive
taxes decrease the more income you make
Progressive
as you make more income your taxes increase (US tax income)
Capital Gains Tax
a tax imposed by the government on the profit (capital gain) earned from the sale of certain types of assets, such as stocks, real estate, or other investments.
Capital Loss
A capital loss occurs when you sell an asset for less than its original purchase price, resulting in a financial loss on your investment.
Corporate income tax
a tax imposed on the profits earned by corporations or businesses. It is one of the primary sources of revenue for governments and is used to fund public services, infrastructure, and various government programs.
Double Taxation
The corporation pays income tax on its profits, and shareholders may also be taxed on the dividends they receive.
When was social security introduced?
1935
Social Security
a government program that provides financial assistance and support to individuals who are retired, disabled, or survivors of deceased workers.
Social security problems
we have an aging population, changing demographics, family sizes, life expectancy (people are living longer)
