Quiz 2 Flashcards
Government imposes taxes on various forms of ______ and _____ in order to raise the revenue to provide public goods and various other services
income and wealth
A ________ is a form of wealth- such as income, property, goods, or services- that is subject to taxes.
tax base
_________ is based on an individual’s income from all sources.
Individual income tax
_________ is based on a corporation’s profit.
Corporate income tax
_______ is based on the value of goods or services at the time of sale.
Sales tax
_________ is based on the value of an individual’s or business’s assets.
Property tax
Homeowners and business owners pay ________ based on the value of their buildings and the land on which the buildings stand.
property taxes
Property tax may also be imposed on other assets such as _________.
automobiles
A _________ takes the same percentage of income from all taxpayers
proportional tax
A _________ places a higher percentage rate of taxation on high income people
progressive tax
A _________ takes a larger percentage of income from low income people.
regressive tax
States with _______ generally charge rates from three to five percent of income.
flat taxes
Cities and countries with ___________ charge about one to three percent of income.
proportional taxes
In the U.S., the federal income tax is a __________, because the tax rate increases as income increases.
progressive tax
Some taxes are ________ because they are applied to sales, not income.
regressive
