TAXES

Question 1

A ___ is a mandatory payment to a local, state, or national government

Answer 1

tax

Question 2

___ is a government income from taxes and nontax sources

Answer 2

revenue

Question 3

The rights of government to tax are set down in the ___ and ___

Answer 3

U.S. Constitution

in state constitutions

Question 4

The ___ principle of taxation holds people who benefit directly from public goods should pay for them in proportion to the amount of benefits received

Answer 4

benefits-received principle

Question 5

The ___ principle of taxation holds that people should be taxed on their ability to pay, no matter the level of benefits they receive

Answer 5

ability-to-pay

Question 6

WHat are the three criterias that tax systems attempt to meet?

Answer 6

Equity
Simplicity
Efficiency

Question 7

The ___, or fairness, of a tax is established by how uniformity the tax is applied

Answer 7

equity

Question 8

Everyone who buys ___ pays the same tax

Answer 8

gasoline

Question 9

The ___ of a tax is determined by how easy it is for the taxpayer to understand and how easy it is for the government to collect

Answer 9

simplicity

Question 10

The individual income tax best meets the criterion of ___

Answer 10

efficiency

Question 11

government imposes taxes on various forms of income and wealth in order to rais ___ to provide public goods and various other services

Answer 11

revenue

Question 12

A ___ is a form of wealth that is subject to taxes

Answer 12

tax base

Question 13

___ income tax is based on an individuals income from all sources

Answer 13

individual

Question 14

___ income tax is based on a corporations profits

Answer 14

corprate

Question 15

___ is based on the value of the goods or services at the time of the sale

Answer 15

sales tax

Question 16

___ is based on the value of an individuals or businesss assets

Answer 16

property tax

Question 17

___ and ___ pay property taxes based on the value of their building and the land on which the buildings stand

Answer 17

Homeowners and business owners

Question 18

Property tax may also be imposed on other assets such as ___

Answer 18

automobiles

Question 19

A ___ takes the same percentage of income from all taxpayers

Answer 19

proportional tax

Question 20

A ___ places a higher percentage rate of taxation on high income people

Answer 20

progressive tax

Question 21

A ___ takes a larger percentage of income from low income

Answer 21

regressive tax

Question 22

States with ___ taxes generally charge rates from three to five percent of income

Answer 22

flat

Question 23

Cities and counties with ___ taxes charge about one to the three percent of income

Answer 23

proportional

Question 24

In the United States, the federal income tax is a ___ tax, because the tax rate increases as income increases

Answer 24

progressive

Question 25

Some taxes are regressive because they are applied to ___, not income

Answer 25

sales

Question 26

Although a sales-tax rate is applied equally to all items subject to the tax, the tax as a percentage of income is ___

Answer 26

regressive

Question 27

The ___ of a tax is the final burden of that tax

Answer 27

incidence

Question 28

A ___ is the use of taxes to encourage or discourage certain economic behaviors

Answer 28

tax incentive

Question 29

In other words, it is the impact of the tax on a ___

Answer 29

taxpayer

Question 30

___ are often imposed on products or activities considered to be unhealthful or damaging to society such as a gambling, alcohol, cigarettes

Answer 30

Sin taxes

Question 31

The largest source of taxes for the federal government is the ___

Answer 31

individual income tax

Question 32

The government began using the income tax after the ___ amendment to the constitution which occurred in 1913

Answer 32

16th

Question 33

___ taxes are the second highest source of federal revenue

Answer 33

social insurance

Question 34

To make it easier for taxpayers and the government a ___ tax is a taken from a workers paycheck - is collected

Answer 34

payroll tax

Question 35

The ___ tax is deducted from a paycheck as a withholding, or money taken from a workers pay before the worker recieves

Answer 35

payroll tax

Question 36

The ___ is the government agency that collects the money for the federal government and administrators the federal tax systems

Answer 36

IRS

Question 37

The ___ tax is progressive tax based on the ability-to-pay principle of taxation

Answer 37

federal income tax

Question 38

May taxpayers take a ___ deduction or ___ deductions, such as interest paid on a home mortgage state and local taxes, charitable contributions, and certain portion of medical expenses

Answer 38

standard deduction or itemize deductions

Question 39

Each year, taxpayers must complete a ___, a form used to report income and taxes owed to various levels of government

Answer 39

tax return

Question 40

Taxes are filled by ___ each year

Answer 40

April 15th

Question 41

___ is a payroll tax that provides coverage for the elderly, the unemployed due to disability, and surviving family members of wage earners who have died

Answer 41

FICA

Question 42

What does FICA mean?

Answer 42

Federal Insurance Contributions ACt

Question 43

FICA is also known as ___

Answer 43

social insurance

Question 44

FICA emcompasses ___ and ___

Answer 44

Social Security and Medicare

Question 45

___ is a federal program to aid older citizens who have retired, children who have lost a parent or both parents, and people with disabilities

Answer 45

Social Security

Question 46

The employer and employee each pay ___% of the employees income uo to an annual maximum

Answer 46

6.2

Question 47

Introduces in 1966, ___ is a national insurance program for citizens over 65 and certain other groups of people

Answer 47

Medicare

Question 48

Employeers and employees each pay ___% of employee income

Answer 48

1.45

Question 49

___ is a program funded by the federal and state taxes and administered by the states

Answer 49

Unemployment compensation

Question 50

___ provides benefits for a certain period of time to employees who lose their jobs through no fault of their own

Answer 50

Unemployment

Question 51

Unemployment tax applies to the first $___ earned by an employee

Answer 51

7000

Question 52

Under normal times, an individual can collect unemployment benefits for a maximum of ___ weeks

Answer 52

26

Question 53

After the recession, Congress passed the ___ to extend that duration to 72 weeks

Answer 53

Emergency Benefit Program

Question 54

___ is the third largest source of tax revenue for the federal government

Answer 54

Corporate income taxes

Question 55

___ for corporations include deductions for investment in building equipments, research, and rules that benefit multinational corporations

Answer 55

tax breaks

Question 56

___are taxed at the corporate level and again at the individual level, since shareholders pay taxes in the income they receive in the form of dividends and capital gains

Answer 56

profits

Question 57

The ___ is a tax on property that is transformed to others on the death of the owner

Answer 57

estate tax

Question 58

Most estates are not subject to this tax, because the government only taxes ___ estates

Answer 58

large

Question 59

The ___ tax is a tax on money or property given by one living person to another

Answer 59

gift tax

Question 60

In Alabama, the maximum amount of a gift tax you receive cannot be more than $___ per year, per individual

Answer 60

14000

Question 61

The ___ tax is a tax on the production or sale of a specific product, such as gasoline or telephone service

Answer 61

excise tax

Question 62

The government places excise taxes on goods or services for which there is relatively ___ demand in order to maintain a steady stream of revenue

Answer 62

inelastic

Question 63

The ___ is a tax in goods imported into the United States from another country

Answer 63

customs duty

Question 64

Customs duties are basically excise taxes in imports and are also known as ___

Answer 64

tariffs

Question 65

The ___ is money charged for the use of a good or service

Answer 65

user fee

Question 66

The federal government charges ___, ___, and ___ fees to victors to national parks

Answer 66

entrance
parking
camping

Question 67

What two categories are the programs and services funded with tax revenue by the federal government?

Answer 67

Mandatory spending

Discretionary spending

Question 68

___makes up well over half of all federal spending

Answer 68

Mandatory spending

Question 69

Most of mandatory spending is in the form of ____, which are social welfare programs with specific requirements

Answer 69

entitlements

Question 70

Many of these programs are not “___”

Answer 70

Means trusted

Question 71

“___” means that certain conditions have been met to receive the benefit.

Answer 71

mean trusted

Question 72

The ___ takes the largest amount of federal spending

Answer 72

social security program

Question 73

Workers must have worked for a certain period of time before they are eligible to receive full benefits under the program which is ___ in the United States

Answer 73

10 years

Question 74

To help control ___, the government has gradually raised the age of retirement

Answer 74

casts

Question 75

The ___ program was introduced in 1966 as an addition old-age benefit under Social Security

Answer 75

medicare

Question 76

___ is a joint federal-state medical insurance program for low-income poeple

Answer 76

medicare

Question 77

The federal govern,ent funds about ___% of the costs of the program, and the states pay about ___%

Answer 77

63

37

Question 78

The ___ program provides funds for about 26 million low-income people to purchase food

Answer 78

Food Stamp

Question 79

Veterans benefits include ___ and __ for service related illness or injury

Answer 79

health care coverage

disability payments

Question 80

The largest discretionary expenditure category is ___ which takes up about 50% of the total discretionary budget

Answer 80

national defense

Question 81

____ is the border protection and the enforcement of some immigration laws falls into the mandatory expenditures category

Answer 81

homeland security

Question 82

The ___ is a plan for spending federal tax money

Answer 82

federal budget

Question 83

The budget is prepared for a ___, a 12 month period for which an organization plans its expenditures

Answer 83

fiscal year

Question 84

The federal governments fiscal year runs from ___ through ___

Answer 84

October 1st to September 30

Question 85

The presidents budget is prepared by the ___

Answer 85

Office of Managment

Question 86

___ are specific amounts of money set aside for specific purposes

Answer 86

Budget Appropriations

Question 87

___, by which the government buys goods and services that it needs to operate such as military equipment and office supplies

Answer 87

Direct spending

Question 88

___ are money distributed to individuals who do not provide anything in return

Answer 88

Transfer payments

Question 89

A ___ is a transfer payment from the federal government to state or local governments

Answer 89

grant-in-aid

Question 90

What three ways does the federal government influence the economy?

Answer 90

Resource allocation
Income redistribution
competition with private sector

Question 91

The ___ is the part of the economy owned by individuals or businesses

Answer 91

private sector