taxes Flashcards
what are taxes?
payments made by you and businesses to support gov
taxes shall be colected by congress
Article 1 section 2
what amendment and time were taxes passed?
16th amendment 1912
tax rates can range from
1% to 40%
individual income tax
largest single source of revenue
exemptions
some type of income that isnt taxable
Whats an example of exemptions
NAT’L state and local bonds
personal exemptions
exemptions when you are married or have children
income tax is progressive, meaning
tax rates go up as your income does
160k make about what of all taxes
60%
self employed people must file and pay
quarterly
Employees and Employers
have to pay joint social security tax/ unemployment/ medicare for about 50%
excise taxes are
taxes on manufacturing, sale or consumption of goods/ services/ luxury items /gas, cigerattes, liqour
estate taxes are
tax on someones estate when they die
what percentage of tax is for estate over 10 mil
35%
gift taxes are
tax on gift over a certain amount
Trump tax reform
reduce tax to put more $$ in peoples paychecks
tax credits are
a way for the poor to reduce their income tax liability
tax credit libility is
dollar to dollar
what is a deficit
When the gov spends more than it brings in
What is the federal budget preparation
from oct 1 to sept 30, the gov sets up its budget
what are the steps to setting up the govs budget
- officer of management and budget gets all the future budgets from other departments
- Departments go through what they have to cut/ add
- budget is submitted
what is an uncontrolable
expenditures required by law to be payed first
what percentage of the fed gov is uncontrolabe
75%
what entitlements
social security, pensions, debt interest, medicare
lowest tax bracket
10%
highest tax bracket
37%
