taxes Flashcards
_______ is a mandatory payment to a government
tax*
______ is government income from taxes
revenue *
_______ wants people who receive benefits from the government to pay more in taxes
benefits-received principle of taxation*
________ thinks people should be made to pay taxes according to ability to pay
ability to pay principle of taxation*
tax systems attempt to meet three criteria:
equity simplicity efficiency *
__________means fairness or how uniformly tax is applied
equity
_________ is determined by how easy it is to pay and understand taxes
simplicity
________ is based on how well taxes raises revenue for the government
efficiency
a ______ is a form of wealth that are subject to tax
tax base
___________ is based on an individual’s income from all sources - largest source of taxes
individual income tax
________ is based on a corporation’s profits
corporate income tax
________ is based of the value of goods or services at the time of the sale
sales tax
_________ is based on the value of an individual’s or business’s assets
property tax
________ takes the same amount of income from all tax payers
proportional tax
________ places a higher percentage rate of tax on higher income people, federal tax
progressive tax*
_______ takes a larger percentage of income from low income people, sales tax
regressive tax
flat taxes usually charges rates from __________ percent of income
3-5
proportional tax charge ________ percent of income
1-3
the ______ of a tax is the finial burden of that tax
incidence*
a__________ is the use of taxes to encourage economic behaviors
tax incentive
_____________ are taxes imposed on products that are harmful or unhealthy
sin tax*
_________ is money taken out of a paycheck before you receive it
payroll tax
the _________ is the government agency that collects money
IRS
when should taxes be filled?
april 15
what are the two types of tax deductions?
standard and itemized
__________ is a payroll tax that provides coverage for the elderly, the disabled - known as social insurance covers social security
FICA
_________ is a federal program to aid older citizens - 6.2 percent of income
social security
_________ is a health insurance program for people over 65
medicare
_________ is a program funded by federal and state taxes and administered by the states
unemployment compensation
___________ is the 3rd larges source of revenue for the govt
corporate income tax
tax breaks include:
investments in buildings, equipment, research, and rules that benefit multinational corporations
_________ is tax on a property that is transferred to others on the death of owner
estate tax**
the _________ is a tax on property given by one living person to another
gift tax
________ is a tax on the production or sale of a specific good
excise tax
the_______ is a tax on imported goods known as tariffs
customs duty**
_______ is money charged for the use of a good or service
fee user
the two programs the govt spends tax revenue on:
mandatory spending - required by law **
discretionary spending - authorized each year
_________ makes up over half of all federal spending
mandatory spending
________ is a joint federal-state medical insurance program for low income people
medicaid
the ________ is the plan for spending federal tax money
federal budget
________ are specific amounts of money set aside for specific purposes
appropriations
_________ when govt buys things needed to operate
direct spending
_______ is money distributed to people who do not provide something in return
transfer payment
the federal govt influences the economy in three ways:
resource allocation
income redistribution
competition with the private sector
________- economy owned by individuals
private sector
