Chapter 14 Taxes Flashcards
1
Q
Taxes
A
A charge usually of money imposed by authority (government) on persons or property tax for public purposes (money people have to pay the government- *main source of income
2
Q
What did Mark Twain say are the two things in life that are certain?
A
Death and Taxes
3
Q
What did Oliver Wendell Holmes say about taxes?
A
The price we pay for a civilized society
4
Q
What are the 3 categories of taxes?
A
- Income- payroll, investments, capital gains, etc.
- Property- real estate, estate (death)
- Goods/Services- sales excise (gas), SIn (tobacco, alcohol), user fees (airline taxes, rental car, toll roads, etc) Luxury (boats, cars etc)
5
Q
What are the 3 major types of taxes?
A
- Proportional- same percentage of taxation on everyone regardless of income, Ex: sales tax
- Progressive- a tax which takes a larger percentage from those who earn a higher income, Ex: Income
- Regressive- a tax that takes a larger percentage of income from low-income groups than from high- income groups, Ex: gas, cigarettes & alcohol
6
Q
What are the 3 types of taxes from paycheck?
A
- Federal Taxes
- State Taxes
- Local Taxes
7
Q
What 4 things do most federal taxes go to?
A
- Social Services: Food Stamps
- Military + government workers
- Social Security
- Medicare (retirees) + Medicaid (poor)
8
Q
What 4 things do most state taxes go to?
A
- Social Services- Welfare
- State Colleges
- Roads
- Hospitals
9
Q
What 4 things do most local taxes go to?
A
- Education (schools)
- Police/ firefighters
- Health
- Social Services: Free lunch in schools
10
Q
What are the 3 major groups who are exempt fro income taxes?
A
- Non-profit organizations
- churches/synagogues/mosques, church schools
-humanitarian groups-United way/ADRA, etc - US citizens working abroad
- Low-income workers
Single: >than $14,000
Married:> $27,000
Full-time students: (19-24)
