Taxes Flashcards
(17 cards)
refers to the fees and financial obligations imposed by a government on its residents.
Taxation
are paid in almost all countries around the world.
Income Taxes
applies to all payments of mandatory levies, including on income, corporate, property, capital gains, sales, and inheritance.
Taxation
Taxation is ______________; hence it does not require consent from the residents. Therefore, the government may resort to the use of force and threats to implement successful taxation.
Involuntary
It is generated through taxation are not bound to any specific service delivery, and they are legally recognized because the compelling establishment is government authority and not a private institution.
Levies
is a form of financing of government activities in almost every country
Taxation
Types of Taxation
- Income Tax
- Corporate Tax
- Payroll Taxes
- Capital Gains Tax
- Property Tax
- Inheritance Tax
- Sales Tax
are levies imposed on the total financial income of an individual, such as wages, investments, and salaries.
Income Tax
is levied on business income. The burden of this tax is shared between the business, its consumers, and the employees through setting higher prices and paying low wages.
Corporate Tax
are levies imposed on employees income to finance social security funds. Normally, this tax amount is automatically deducted from the income and paid by the employer on behalf of the employee.
Payroll Tax
are levied on capital assets, which include personal properties and investments like stocks, homes, bonds, cars, or jewelry.
Capital Gain Taxes
are generally imposed on physical property, such as land and buildings. They are the primary revenue source for local state governments.
Property Taxes
A type of tax levied on individuals who inherit the estate of a deceased person.
Inheritance Tax
A consumption tax imposed by a government on the sale of goods and services. This can take the form of a value added tax VAT, a goods and services tax (GST) a state or provincial sales tax, or an excise tax.
Sales Tax
Classes of Taxes
- Direct Tax
- Indirect Tax
are levies subjected to individuals based on the taxpayer’s net wealth, expenditure, or personal net income.
Direct Taxes
are taxes imposed on transactions such as imports and exports and the production and consumption of goods and services.
Indirect Taxes
