Categories of Taxes
9 states do not have this form of taxes
State Income Tax
Levels of payment for your income
Brackets
The most common tax form
W-2
The more you make, the more you pay
Progressive System
Sum of all deficits
Debt
This tax is also known as "Death Tax"
Estate Tax
List of items you can subtract
Itemized
This form is for the self-employed
1040
Same tax rate on ALL individuals
Proportional System
The day that taxes are due each year
April 15th
This tax includes Social Security and Medicare
Payroll Tax
Anything subtracted from the amount you pay
Deduction
This form is for the independent contractors
1099
Usually hits the lower class the hardest
Regressive
The Four Functions of Government
Security, Order, Services, Public Policy
Value agreed on upon the Buyer and the Seller
Market Value
Things you can have subtracted
Write-Off
A form that reports how much taxes to take out of your paycheck
W-4
The US Federal Income Tax System is an example of what system?
Progressive System
Defense and Education are examples of what type of government spending?
Discretionary Spending
Tax based on quantity and not value
Excise Tax
Government gives tax breaks for specific items during certain times
Incentivization
A 0 on a W-4 means...
More money taken out now, more in the refund
A progressive tax structure where different levels of income are taxed at increasing rates
Marginal Taxation System
This theory needs more taxes to operate and believes in larger government
Keynesian Theory