Vocab
Three Types of Taxes
Criteria for Effective Taxes
Economic Impact of Taxes
Principles of Taxation
100
An annual report to the IRS summarizing total income, deductions, and taxes withheld.
What is Tax Return
100
Three general types of taxes that exist in the United States today
What is proportional, progressive, regressive
100
The three criteria that taxes must meet are
What is equity, simplicity, and efficiency
100
Taxes and other governmental revenues influence the economy by affecting
What is resource allocation, behavior adjustment, productivity and growth
100
Those who benefit from government goods and services should pay in proportion to the amount of benefits they receive
What is the benefit principle of taxation
200
A federal health-care program available to all senior citizens, regardless of income.
What is Medicare
200
Imposes the same percentage rate of taxation on everyone, regardless of income.
What is proportional tax
200
The IRS stands for
What is Internal Revenue Service
200
Less of the tax can be shifted back to the taxpayer if demand is
What is elastic
200
The belief that people should be taxed according to their ability to pay regardless of the benefits they receive
What is ability-to-pay principle of taxation
300
The tax rate that applies to the next dollar of taxable income.
What is marginal tax rate
300
A tax that imposes a higher percentage rate of taxation on lower incomes than on higher incomes
What is regressive tax
300
Exceptions or oversights in the tax law that allow some people and businesses to avoid paying taxes
What is a tax loophole
300
An example of the benefit principle of taxation
What is gasoline taxes
400
A relatively high tax designed to raise revenue while reducing consumption of a socially undesirable product such as liquor or tobacco
What is Sin Tax
400
A tax that imposes a higher percentage rate of taxation on higher incomes than on lower ones
What is progressive tax
400
Between what dates must employees file a tax return
What is December 31 to April 15
400
A tax that can be shifted to others
What is indirect tax
400
Taxes can affect productivity and economic growth by changing the incentives to
What is save, invest, and work
500
The final burden of the tax
What is incidence of a tax
500
The tax rate that applies to the next dollar of taxable income
What is marginal tax rate
500
A general tax levied on most consumer purchases
What is sales tax
500
A tax that cannot be shifted to others
What is direct tax
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