Taxes Part 2 Flashcards
The government agency that collects the money for the federal government and administer the federal tax system
IRS
A progressive tax based on the ability to pay principle of taxation
Federal income tax
Many taxpayers take what as interest paid on a home mortgage, state and local taxes etc.
Standard deduction or itemize deductions
Each year taxpayers must complete what to report income and taxes owed to various levels of govt.
Tax return form
Taxes are filed when every year ?
By April 15th
A payroll tax that provides coverage for the elderly the unemployed due to disability and surging family members of wage earners who have died
federal insurance contributions act (FICA)
FICA is also known as what ?
Social insurance
FICA encompasses what ?
Social security and Medicare
Federal program to aid elderly citizens who have retired, children who have lost one or both parents and people with disabilities
Social security
Employer and employee each pay what % of the employees income up to an annual maximum
6.2
Some taxes are what because they are applied to sales not income
Regressive
What is the final burden of a tax
Incident
The use of taxes to encourage or discourage certain economic behaviors
Tax incentive
Often imposed on products or activities considered to be unhealthful or damaging to society such as gambling, alcohol, cigarettes
Sin taxes
The largest source of taxes for the federal government is what ?
Individual income tax
