quiz 3 Flashcards
(18 cards)
the final burden of the tax
the incidence
the impact of the taxes are on who?
the taxpayer
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, or cigarettes
sin taxes
the largest source of taxes for the federal government
individual income tax
the government began using the income tax after the _______ which occurred in 1913
16th amendment to the consititution
highest source of federal revenue (both workers and employers share this burden)
social insurance taxes
a tax taken from a workers check to make it easier for taxpayers and government
payroll tax
the government agency that collects the money for the federal government and administers the federal tax system
IRS
a progressive tax based on the ability to pay principle of taxation
federal income tax
many taxpayers take a ________ or itemize deductions, such as interest paid on a home mortgage, state and local taxes, charitable contributions, etc.
standard deduction
each year taxpayers must complete a _______, a form used to report income and taxes owed to various levels of governemnt
tax return
taxes are to be filed on _______ each year
april 15th
a payroll tax that provides coverage to the elderly, the unemployed due to disability, and surviving family members of wage earners who have died
FICA or Federal Insurance Contributions Act
also known as social insurance
FICA
encompasses social security and medicare
FICA
a federal program to aid older citizens who have retired, children who have lost a parent or both parents, and people with disabilities
social security
the employer and employee each pay ______ of the employees income up to an annual max
6.2%
