Taxes

Question 1

a ______ is a mandatory payment to a local, state, or national government

Answer 1

tax

Question 2

the ______ Amendment allows the government to tax regularly

Answer 2

Sixteenth

Question 3

______ is government income from taxes and nontax sources

Answer 3

revenue

Question 4

the rights of government to tax are set down in the ______ and in ______

Answer 4

U.S. Constitution

State Constitutions

Question 5

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

Answer 5

benefits-received principle

Question 6

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

Answer 6

ability-to-pay principle

Question 7

tax systems attempt to meet 3 criteria:

Answer 7

equity
simplicity
efficiency

Question 8

the ______, or fairness, of a tax is established by how uniformly the tax is applied

Answer 8

equity

Question 9

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

Answer 9

simplicity

Question 10

the ______ best meets the criterion of efficiency

Answer 10

individual income tax

Question 11

a ______ is a form of wealth- such as income, property, goods, or services- that is subject to taxes

Answer 11

tax base

Question 12

______ is based on an individual’s income from all sources

Answer 12

individual income tax

Question 13

______ is based on a corporation’s profits

Answer 13

corporate income tax

Question 14

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

Answer 14

sales tax

Question 15

______ is based on the value of an individual‘s or business’s assets

Answer 15

property tax

Question 16

a ______ takes the same percentage of income from all taxpayers

Answer 16

proportional tax

Question 17

a ______ places a higher percentage rate of taxation on high income people

Answer 17

progressive tax

Question 18

a ______ takes a larger percentage of income from low income people

Answer 18

regressive tax

Question 19

in the United States, the federal income tax is a ______ because the tax rate increases as income increases

Answer 19

progressive tax

Question 20

the ______ of a tax is the final burden of that tax

in other words, it is the impact of the tax on a taxpayer

Answer 20

incidence

Question 21

a ______ is the use of taxes to encourage or discourage certain economic behaviors

Answer 21

tax incentive

Question 22

______ are often imposed on products or activities considered to be unhealthful or damaging to society

Answer 22

sin taxes

Question 23

the largest source of taxes for the federal government is the ______

Answer 23

individual income tax

Question 24

______ are the second highest source of federal revenue

Answer 24

social insurance taxes

Question 25

a tax taken from a worker’s paycheck

Answer 25

payroll tax

Question 26

money taken from a worker’s pay before the worker receives it

Answer 26

withholding

Question 27

______ is the government agency that collects the money for the federal government and administers the federal tax system

Answer 27

IRS

Question 28

the federal income tax is a ______ tax based on the ______ principle

Answer 28

progressive

ability to pay

Question 29

a form used to report income and taxes owed to various levels of government

Answer 29

tax return

Question 30

taxes are to be filed by what day each year

Answer 30

April 15

Question 31

What does FICA stand for?

Answer 31

Federal Insurance Contributions Act

Question 32

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

Answer 32

FICA

Question 33

FICA is also known as ______

Answer 33

social insurance

Question 34

FICA encompasses ______ and ______

Answer 34

Social Security Medicare

Question 35

______ 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 35

Social Security

Question 36

______ is a national health insurance program for citizens over 65 and certain other groups of people

Answer 36

Medicare

Question 37

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

Answer 37

unemployment compensation

Question 38

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

Answer 38

unemployment

Question 39

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

Answer 39

corporate income taxes

Question 40

______ are taxed at the corporate level and again at the individual level

Answer 40

profits

Question 41

______ is a tax on property that is transferred to others on the death of the owner

Answer 41

estate tax

Question 42

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

Answer 42

gift tax

Question 43

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

Answer 43

excise tax

Question 44

______ is a tax on goods imported into the United States from another country

Answer 44

customs duty

Question 45

______ is money charged for the use of a good or service

Answer 45

user fee

Question 46

the programs and services the federal government funds with tax revenue are divided into two categories:

Answer 46

mandatory spending

discretionary spending

Question 47

______ is required by law

Answer 47

mandatory spending

Question 48

______ has to be authorized each year

Answer 48

discretionary spending

Question 49

______ is a joint federal-state medical insurance program for low-income people

Answer 49

Medicaid

Question 50

______ provides funds for about 26 million low-income people to purchase food

Answer 50

Food Stamps program

Question 51

______ include health care coverage and disability payments for service-related illness or injury

Answer 51

Veterans’ benefits

Question 52

the largest discretionary expenditure is ______ which takes up about 50% of the total discretionary budget

Answer 52

national defense

Question 53

______ is a plan for spending federal tax money

Answer 53

federal budget

Question 54

the budget is prepared for a ______, a 12 month period for which an organization plans its expenditures

Answer 54

fiscal year

Question 55

the federal government’s fiscal year runs from ______ through ______

Answer 55

October 1

September 30

Question 56

the President’s budget is prepared by the ______

Answer 56

Office of Management and Budget

Question 57

______ are specific amounts of money set aside for specific purposes

Answer 57

appropriations

Question 58

three types of federal spending:

Answer 58

direct spending
transfer payments
grant-in-aid

Question 59

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

Answer 59

transfer payments

Question 60

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

Answer 60

grant-in-aid

Question 61

the federal government influences the economy in three ways:

Answer 61

resource allocation
income redistribution
competition with the private sector

Question 62

______ is the part of the economy owned by individuals or businesses

Answer 62

private sector