Taxes Test 1
What day is tax day in the United States? (Deadline to file taxes?)
April 15th
Dollar for dollar subtraction in amount of taxes owed to the government that is not subject to tax bracket interest (unlike tax deductions). Dependent children are an example.
Tax Credit.
What is a W2?
Form sent by employer that contains the wages and taxes paid to employees over a calendar year.
Main document used in filing taxes.
What is a tax deduction?
Amount of money an individual can subtract from their taxable income, therefore lowering taxes.
What power is granted to the federal government with the 16th Amendment?
power of income tax
Explain Benefits-Received tax system/theory and give an example.
Individuals who use certain products/services more than other individuals pay a tax that ideally will serve them more in the future. Gas taxes being used to fund road or highway construction.
Everyone is taxed the same rate regardless of income. Sales Tax.
Explain a progressive tax system/theory & give an example.
The more money an individual earns, the higher percentage of taxes they pay. Income tax.
Income, sales, property and payroll/corporate.
List the 4 characteristics of a "good" tax.