Terminology
A payment to support the costs of government.
A tax
An item, occurrence, transaction, or activity with respect to which a tax is levied.
A tax base
What are the three jurisdictions of tax law?
Local, State, and Federal.
The body of legal authority consists of statutory laws, administrative pronouncements, and judicial decisions.
tax law
Any person or organization required by law to pay tax to a governmental authority
A taxpayer
What is the formula for the dollar amount of a tax?
Tax (T) = Rate (r) x Base (B)
Real and Personal Property tax is a ____ tax.
local
The subdivision of the U.S. Treasury Department is responsible for the enforcement of federal tax laws and the collection of federal taxes.
The Internal Revenue Services (IRS)
The ultimate economic burden is represented by a tax.
The incidence
A single percentage that applies to the entire tax base.
A flat rate
State taxes include retail sales, use, and excise taxes, along with ____ income tax and ____ income tax.
personal, corporate
The Internal Revenue Code is a dynamic document; at least once a year, Congress passes legislation that adds to, deletes from, or modifies its provisions.
Statutory Authority
The right of a government to levy tax on a specific person or organization
A jurisdiction
Multiple percentages apply to specified brackets of the tax base.
A graduated rate
The ____ government enacted the first personal income tax in 1861 to raise money to support the Union armies during the Civil War.
federal
The IRS must take the specifics of these laws and translate them into detailed regulations, rules, and procedures.
Administrative Authority
A tax is imposed on the periodic increases in wealth resulting from a person’s economic activities.
An income tax
Total tax collected by the government and available for public use.
Revenue
Why do different jurisdictions compete for revenues from the same taxpayer?
Their taxing jurisdictions overlap
When statutory or administrative authority alone fails to resolve a particular research problem, it may be necessary to consult the ____ Authority.
Judicial