Tax Bases
What is the general definition of a tax base?
The tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority
What is a tax structure?
How the gov decides what you pay based off of individual income.
What kind of taxes are federal taxes?
Progressive Taxes (Income)
Individual income tax, corporate income tax, sales tax, and property tax.
What are three types of tax structures?
Proportional, Progressive, Regressive
What kind of tax funds state governments?
State income tax.
You buy 10 gallons of gas, at a price of $2.58 a gallon. They tax you 2% of the total cost. What kind of tax is that?
Sales Tax
What is the difference between progressive and regressive tax structures?
Progressive: The amount you pay in taxes increases as income increases
Regressive: The amount you pay in taxes decreases as income increases
What is the age requirement for medicare?
65
You worked really hard one week and its pay day on friday. You receive your paycheck expecting a huge pay out. You open you paycheck only to be disappointed in how much taxes was taken out of your paycheck. What kind of tax is this?
Individual Income Tax
What is an example of a proportional or progressive tax structure?
Income or property taxes
When was social security tax established in the US?
The great depression (1935)
What does a broad tax base do for administration cost?
A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates.
What kind of tax is a sales tax?
Regressive Tax
List all six major sources of tax revenue.
Individual Income Taxes, Corporate Income Taxes, Social Insurance Taxes, Excise Taxes, Estate and Gift taxes, and Taxes on Imports