chapter 16 Flashcards
Governments number 1 way to get money
Taxing
Power to tax is to whom and comes from what?
From Constitution and to Congress
type of match that was taxed
white phosphorus
4 limits on power to Tax
- ) Must be for public use, not private
- ) Cannot tax exports, but can prohibit some items
- )Direct taxes must be equally among states
- ) all duties, imposts, and excise taxes must be uniform
implied limits on Tax
Federal government can’t take state and local government in exercise
reasons to tax
raise money needed to operate FED GOV
discourage activity harmful to public
tax that must be borne by the person upon whom it is levied
direct tax
examples of direct taxes
tax on land or buildings
levies that may be shifted to another for payment
indirect tax
made by 16th amendment; largest source of federal revenue; flexible due to government desiring specific amount of money ; put on both people and corporation
income tax
the higher one’s income, the higher the tax rate is; also called income tax
progressive tax
april 15th; to collect taxes
Tax Day
all of earrings above the costs of doing business
net income
most complicated of taxes due to many deductions allowed
corporate income tax
Main 3 social welfare programs collected for money
- ) Old Age, Survivor, and Disability Insurance (OASDI)
- ) Medicare
- )Unemployment compensation
basic Social security program
OASDI
healthcare for the elderly
medicare
benefits paid to jobless workers
unemployment compensation program
imposed on all employees and employers; withheld amount from paycheck
payroll taxes
taxes levied at a fixed rate without regard to the level of a taxpayers income or his or her ability to pay them
regressive taxes
what takes more money than any income tax?
Social insurance– medicare
tax laid on the manufacture, sale, or consumption of goods or services
excise taxes (Hidden tax/sin tax/luxury taxes)
a levy imposed on the assets (the estate) of someone who dies
estate tax
levy imposed on a gift from one living person to another
gift tax
