Taxes

Taxation 1

100

This is a gov’t agency in charge of collecting taxes today.

IRS

200

In 1913, this Amendment to the US Constitution changed the constitution so that Congress could take individual income taxes

16th amendment

300

When your boss automatically takes income taxes from your paycheck and sends them directly to the gov’t:

PAYROLL WITHHOLDING

400

This type of tax is a tax a company pays on its profits

CORPORATE INCOME TAX

500

You pay this tax when you die so that your heir can inherit all of your possessions.

ESTATE TAX

Taxation 2

100

This tax keeps you from avoiding the estate tax

GIFT TAX

200

A tax on things you buy in other countries and then bring back to the USA:

CUSTOMS DUTY

300

A source of revenue for local gov’ts (not state or federal) alone. ......Example: a tax on your house that pays for local public schools

PROPERTY TAX

400

This type of tax can be shifted to others

indirect tax

500

A tax on hotel rooms can be passed down to the customers, so it is THIS kind of tax:

INDIRECT

Taxation 3

100

This term describes who actually pays the tax, or the final burden of the tax

INCIDENCE OF TAX

200

The principle that those who benefit most from taxes should be the ones who pay the most in taxes:

BENEFIT PRINCIPLE

300

The sales tax falls harder on the poor b/c it takes a bigger percentage of their income, thus it is THIS kind of tax:

REGRESSIVE

500

The principle that those who benefit most from taxes should be the ones who pay the most in taxes:

BENEFIT PRINCIPLE

Taxes

100

A tax placed on the value that manufacturers add at each state of making a product

VAT

200

THIS lets companies pay less taxes by allowing them to claim their “stuff” is older, and therefore, less valuable than it really is

Accelerated depreciation

300

If a company buys a $50,000 machine, they’ll pay less taxes due to THIS

investment tax credit

400

The idea to tax speed boat sales because only rich people buy boats and they can afford the tax is called the __________ principle

ability to pay

500

The idea (from reading packet) that people won't change the way the behave if the prices for things go up as a result of taxes

static analysis