Taxes

Question 1

Mandatory payment to a local, state, or national govt

Answer 1

Tax

Question 2

Govt income from taxes and nontax sources

Answer 2

Revenue

Question 3

The rights of the govt to tax are set down in the ________________

Answer 3

US/State constitution

Question 4

People should be taxed on their ability to pay, no matter the level of benefits they receive

Answer 4

Ability-to-pay Principle

Question 5

People who benefit from public goods should pay for them in proportion to the amount of benefits received

Answer 5

Benefits-received Principle

Question 6

Tax systems must meet what three criteria?

Answer 6

Efficiency, Equity, and Simplicity

Question 7

The final burden of a tax

Answer 7

Incidence

Question 8

The use of taxes to encourage or discourage certain economic behaviors

Answer 8

Tax incentive

Question 9

Taxes imposed on products or activities considered to be unhealthful or damaging to society

Answer 9

Sin taxes

Question 10

The second highest source of federal revenue

Answer 10

Social insurance taxes

Question 11

The largest amount of taxes for the federal govt

Answer 11

Individual income tax

Question 12

Money taken from a worker’s pay before the worker receives it

Answer 12

Withholding

Question 13

The govt agency that collects the money for the federal govt and administers the federal tax system

Answer 13

IRS

Question 14

Takes the same percentage of income from all taxpayers

Answer 14

Proportional tax

Question 15

Places a higher percentage rate of taxation on high income people

Answer 15

Progressive tax

Question 16

Progressive tax based on the ability-to-pay principle of taxation

Answer 16

Federal income tax

Question 17

Taxes are supposed to be filed by _______________ each year

Answer 17

April 15th

Question 18

Federal Insurance Contributions act, a payroll tax that provides coverage for the elderly, the unemployed due to disability, and surviving family members of wage earners who died

Answer 18

FICA

Question 19

Federal program to aid older citizens who have retired, children who have lost a parent or both parents, and people with disabilities

Answer 19

Social security

Question 20

The employer and employee each pay _______ of the employee’s income up to an annual maximum for social security

Answer 20

6.2%

Question 21

Takes a larger percentage of income from low income people

Answer 21

Regressive tax

Question 22

What are the two types of deductions someone can file on their taxes?

Answer 22

Standard and itemized

Question 23

What amendment allowed for the taxing of individuals?

Answer 23

16th

Question 24

National health insurance program for citizens over 65 and certain other groups of people

Answer 24

Medicare

Question 25

Employers and employees pay ______________ of employee income for medicare policies

Answer 25

1.45%

Question 26

Program funded by federal and state taxes and administered by the states to assist people who are unable to work

Answer 26

Unemployment compensation

Question 27

Unemployment tax applies to the first _________ an employee earns

Answer 27

$7000

Question 28

Third largest source of tax revenue for federal government

Answer 28

Corporate income tax

Question 29

Tax on property that is transferred to others on the death of the owner

Answer 29

Estate tax

Question 30

Tax on money or property given by one living person to another

Answer 30

Gift tax

Question 31

In alabama, a gift cannot exceed _____________ per year, per individual

Answer 31

$14000

Question 32

Tax on the production or sale of a specific product

Answer 32

Excise tax

Question 33

Tax on goods imported into the United States from another country

Answer 33

Customs duties

Question 34

Another name for the custom duty

Answer 34

Tariff

Question 35

Money charge for the use of a good or service

Answer 35

User fee

Question 36

What are the two categories of govt spending?

Answer 36

Mandatory and Discretionary

Question 37

Govt spending required by law

Answer 37

Mandatory spending

Question 38

Govt spending that is approved each year by congress

Answer 38

Discretionary spending

Question 39

The plan for spending federal tax money

Answer 39

Federal budget

Question 40

A 12 month period for which an organization plans it expenditures

Answer 40

Fiscal year

Question 41

The president's budget is prepared by the ____________________

Answer 41

Office of Management and budget

Question 42

Money distributed to individuals who do not provide anything in return

Answer 42

Transfer payments

Question 43

Transfer payment from the federal government to state-or local governments

Answer 43

Grant-in aid

Question 44

The part of the economy that is owned by individuals or businesses

Answer 44

Private sector