Chapter 14 Flashcards
(34 cards)
Tax
Required payment to local state or national government
Revenue
Income received by a government from taxes and nontaxes sources
Tax base
Income, property, good, or service subject to a tax
Individual income tax
Tax on a persons earning
Sales tax
Dollar value of a good or service being sold
Property tax
Value of a property
Corporate income tax
Value of a company’s profit
Proportional tax
Percentage of income paid in taxes remains the same for all income levels
Progressive tax
Percentage of income paid in taxes increases as income increases
Regressive tax
Percentage of income paid in taxes decreases as income increases
Incidence of a tax
Final burden of a tax
Withholding
Taking tax payments out of an employees pay before he or she receives it
Tax return
Form used to file income taxes
Taxable income
Tax must be paid
Personal exemption
Set amount that you subtract from gross income for yourself, spouse
Deduction
Variable amounts that you can subtract or deduct from gross income
FICA
Social security and Medicare
Social security
Old age, survivors, and disability insurance
Medicare
National health insurance program that helps pay for health care for people over age 65 or certain disabilities
Estate tax
Tax on estate
Gift tax
Money or property given from another
Tariff
Imported goods
Tax incentive
Taxation to encourage or discourage certain behavior
Mandatory spending
Spending on mandated or required by existing law
