Tax Basics
A required payment to local, state, or national government is called
Taxation
The income received by a government from taxes and other nontax sources is called
What is the latest date that you should receive your W-2 form?
Jan 31st
Taxpayers and businesses should be able to keep the necessary records, prepare forms, and pay taxes on a predictable schedule.
Simplicity
A tax on a person’s earnings is called
Individual income tax
Which branch of government is in control of levying taxes
Legislative
Which article of the US Constitution addresses taxation?
Article I
Who provides you with a W-2 form?
The tax system should be fair, so that no one bears too much or too little of the tax burden.
Equity
A tax on the dollar value of a good or service being sold is called
Sale tax
A constant percentage of income is taken in taxes as income increases is called
Proportional
A national health insurance program that helps pay for health care for people over the age of 65 or with certain disabilities
Medicare
What is the deadline day for which you should file your taxes with the IRS?
April 15th
Taxpayers should be able to pay taxes without giving up too much in time and government officials should be able to collect taxes without spending too much time and money.
Efficiency
A tax on the value of a property
Property tax
A smaller percentage of income is taken in taxes as income increases
Regressive
Name for the taxes that fund Social Security and Medicare
FICA
Variable amounts that you can subtract from your gross income
Deductions
This characteristic means it should be clear to the taxpayer when a tax is due, how much money is due, and how the tax is to be paid.
AGI stands for
Adjusted Gross Income
A larger percentage of income is taken in taxes as income increases
Progressive
The majority of the US citizens' tax money goes to which department?
Health
What are two ways to calculate the amount of money you can subtract from your income before your taxes are calculated?
Itemized and Standard
What are the four characteristics of a good tax
Simplicity
Efficiency
Certainty
Equity
List the 5 tax bases
Income
Sales
Property
Profits
Other