# TAXES

Question 1

7 big categories of taxes
Tax => to fund & to create
finance charges levied or imposed upon a taxpayer or legal entity

Answer 1

1. Income tax - tax on income
2. Property tax - tax on property
3. Inheritance tax - tax on inheritance
4. Sales tax - tax on sales
5. Excise tax - tax on bad products
6. Tariff - tax on international trade
7. Payroll tax - tax on salary

Question 2

a finance charge

Answer 2

the total cost including interest that you must pay for borrowing money in the form of a loan or with a credit card

Question 3

levy - v

Answer 3

to officially ask for an amount of money, such as a tax, for a government or organization

Question 4

imposed upon

Answer 4

to introduce a new law, tax, rule, or punishment

Question 5

a taxpayer

Answer 5

a person who pays tax

Question 6

a legal entity

Answer 6

a company or organization that has legal rights and responsibilities, for example the right to make contracts and the responsibility to pay debts

Question 7

(to fund) public expenditures

Answer 7

is spending made by the government of a country on collective needs and wants such as pension, provisions (such as education, healthcare and housing), security, infrastructure, etc

Question 8

(to create) social welfare

Answer 8

services provided by the government or private organizations to help poor, ill, or old people

Question 9

1. Income tax (tax on income)

Answer 9

the BIGgest source of Tax revenue for the GV

Question 10

2. Property tax (tax on property like real

estate)

Answer 10

be collected by the Municipal GV. (be similar to be A rent expense)

Question 11

3. Inheritance tax (tax on inheritance)

Answer 11

have received from someone who has died

Question 12

4. Sales tax (tax on an exchange) (like VAT in VN)

Answer 12

The customers will bear the tax burden

Question 13

5. Excise tax (tax on bad products like

tobacco, alcohol, etc, carbon tax)

Answer 13

to limit the activity of

companies producing these kinds of products

Question 14

carbon tax (tax on the consumption of
fuels are harmful to the environment)

Answer 14

com. emit CO2 a lot have to pay carbon tax

Question 15

6. Tariff (tax on import and export)

Answer 15

discourage international trade => protect domestic corporations from outsiders who can compete at cheaper prices

Question 16

7. Payroll tax (imposed on employers and employees)

Answer 16

to fund social security and unemployment insurance

Question 17

Tax policies

Answer 17

used by the government to manipulate the our behavior => equalize
the rich and poor
- a great incentive tool
if donate to charity, get a tax credit => reduces tax payable => make donation cheaper.

Question 18

dependants

Answer 18

peo in the family who live off of your income

Question 19

remit to (the GV)

Answer 19

submit the payments to

Question 20

calculate

Answer 20

(Total income - deductions) x tax rate - tax credits.

Question 21

taxable income

Answer 21

the amount of income used to calculate how much tax an individual or a company owes to the government

Question 22

a paycheck

Answer 22

the amount of money a person earns

Question 23

a payroll staff

Answer 23

a payroll manager or supervisor and assist with coding, posting, and auditing payroll reports

Question 24

tax agency

Answer 24

an organization with official responsibility for collecting taxes

Question 25

tax return

Answer 25

like free money
a form in which we declare our income, deductions and credits to
calculate the tax

Question 26

INCOME

Answer 26

The most common type is employment income or

salary or wages

Question 27

self-employed => Self employment income

Answer 27

run their own business or they work for themselves

=> money earn Self employment income => earn from selling material things

Question 28

professional income

Answer 28

Another type of self-employment income

=> earn from professional activities like consulting, accounting, legal or medical services

Question 29

rental income

Answer 29

rent their real estates and collect rents

every month.

Question 30

investment income - comprises Dividends and Interests

Answer 30

invests money in stocks and bonds and earns
Dividends ~ are paid
to bondholders
Interests ~ are paid
to bondholders

Question 31

Capital gains => are taxed at the smallest rate

Answer 31

the gain of property

after you sell your it (Sold $5 - buy $3 = gain)

Question 32

pension income

Answer 32

money you receive from the GV when you get old enough.

Question 33

DEDUCTIONS
=> reduce your
taxable income

Answer 33

to reduce your income on the tax return to
pay as less tax as possible.
like expenses
* expenses
that are paid for the purposes of earning income to claim a deduction

Question 34

union or professional dues

Answer 34

@ make to the union based on their working status.

@ Membership fees paid to maintain a professional status recognized by law

Question 35

CREDITS

=> reduce your tax obligation

Answer 35

to encourage good bahaviors of the society

=> makes donation cheaper

Question 36

Tax avoidance

Answer 36

Legal
to minimize or delay the tax liabilities using legal
ways.
Way: to maximize
the amount of tax deductions and tax credits.
used by accountants and tax professionals to reduce taxes for their clients

Question 37

Tax evasion

Answer 37

illegal, a crime

intentionally avoids paying taxes owed

Question 38

Places to evade taxes

Answer 38

=> tax havens are jurisdictions
=> levy no or only small taxes
no share inf about the foreign tax payers to protect them