Taxes (1)
Which income tax structure is used in the United States?
Regressive
Progressive
Proportional
None of the above
Progressive
The standard deduction ______ income subject to tax.
Decreases
Out of your payroll taxes, you pay ___% for social security.
6.2
Give an example of taxable income.
Wages, salaries, tips, interest income, scholarships and grants, unemployment compensation, social security benefits
Federal income taxes are based on the ____-__-___ principle.
Ability-to-pay
Everyone benefits equally from government services. True/False
False
Payroll taxes are also called ____ taxes.
FICA
Out of your payroll taxes, you pay ___% for medicare.
1.45
What are the two types of deductions?
Standard and Itemized
What is not an example of a person’s income?
Valuables
Rents
Interest
Profits
Valuables
A person’s tax bracket depends on that person’s income True/False
True
Who completes the form W4?
You/ the employee
When is voluntary compliance/taxes due?
April 15th
The level of this is judged by benefits received and ability-to-pay.
Tax fairness
Most states do not tax…
Equipment
Electronics
Food
Clothing
Food
What is another term for proportional tax?
Flat tax
Form __ reports wages paid to employees and the taxes withheld from the wages.
W2
What are the two types of exemptions?
Personal and dependency
Give an example of someone’s wealth.
Cars, stocks, a house, etc.
The standard deduction depends on…
if you’re married or single
What is another term for progressive tax?
Graduated tax
Why did the government start imposing taxes?
Revenue for after the war
What are two types of tax forms?
Form W4, form W2, form 1099-INT, form 1040EZ, form 1040A, form 1040, 1098-T, SSA-1099, form 1099-G
___ fees take a larger percentage of income from low-income groups than from high-income groups.
User
A progressive tax is a tax whose rate ____ as the amount being taxed increases.
Increases