Taxes

Question 1

mandatory payment to a local, state, or national govt

Answer 1

tax

Question 2

govt income from taxes and nontax sources

Answer 2

revenue

Question 3

the rights of govt to tax are set down in the ______ and in state constitutions

Answer 3

US Constitution

Question 4

what amendment allows for taxation

Answer 4

16th

Question 5

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

Answer 5

principle of taxation

Question 6

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

Answer 6

the ability to pay principle of taxation

Question 7

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

Answer 7

simplicity

Question 8

The individual income tax best meets what

Answer 8

the criterion of effeciency

Question 9

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

Answer 9

tax base

Question 10

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

Answer 10

sales tax

Question 11

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

Answer 11

property taxes

Question 12

takes the same percentage of income from all taxpayers

Answer 12

proportional tax

Question 13

places a higher percentage rate of taxation on high income people

Answer 13

progressive tax

Question 14

takes a larger percentage of income from low income people

Answer 14

regressive tax

Question 15

Cities and countries with _________ taxescharge about 1-3% of income

Answer 15

proportional

Question 16

the federal income tax is a _______, bc the tax rate increases as income increases

Answer 16

progressive tax

Question 17

Is the final burden of that tax (impact of the tax on a taxpayer)

Answer 17

incidence of a tax

Question 18

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

Answer 18

tax incentive

Question 19

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

Answer 19

sin taxes

Question 20

The largest source of taxes for the federal govt. is

Answer 20

individual income tax

Question 21

The govt began using the income tax after the _______which occurred in 1913

Answer 21

16th Amendment to the Constitution

Question 22

are the second highest source of federal revenue

Answer 22

social insurance taxes

Question 23

who is the govt agency that collects the money for the federal govt and administers the federal tax system

Answer 23

the IRS

Question 24

The federal income tax is a progressive tax based on what

Answer 24

the ability-to-pay principle of taxation

Question 25

Taxes are to be filed by______ each year

Answer 25

april 15th

Question 26

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

Answer 26

tax return

Question 27

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 27

Federal Insurance Contributions Act

Question 28

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

Answer 28

Social security

Question 29

is a national health insurance program for citizens over 65 and certain other groups of people (introduced in 1966)

Answer 29

Medicare

Question 30

is the 3rd leading sources of tax revenue for the federal govt

Answer 30

corporate income taxes

Question 31

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

Answer 31

estate tax

Question 32

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

Answer 32

the gift

Question 33

a tax in the production or sale of a specific product, such as gasoline or telephone service

Answer 33

excise tax

Question 34

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

Answer 34

the government

Question 35

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

Answer 35

the custom duty

Question 36

is money charged for the use of a good or service

Answer 36

the user fee

Question 37

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

Answer 37

Mandatory spending- is required by law

Discretionary spending- has to be authorized each year

Question 38

Workers must have worked for a certain period of time before they are eligible to receive full benefits under the program which is how many years in the US

Answer 38

10 years

Question 39

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

Answer 39

medicaid

Question 40

The federal govts fiscal year runs from _____ to ______

Answer 40

october 1 - september 30

Question 41

The President’s budget is prepared by who?

Answer 41

the Office of Management and Budget

Question 42

what are specific amounts of money set aside for specific purposes

Answer 42

appropriations

Question 43

what makes up well over half of all federal spending

Answer 43

mandatory spending