This tax is usually levied on most consumer purchases
What is the sales tax
100
Ann earns $10,000 annually and pays a tax of $1,000. Jerome earns $60,000 during the same period and pays taxes of $20,000. The tax they both paid was a
What is progressive
100
FICA includes taxes to pay for
What is Social Security and Medicare.
100
The flat tax departs from this principle of taxation
What is ability-to-pay principle of taxation.
100
A federal tax on people's earnings
What is the individual income tax
200
An annual report to the IRS summarizing total income, deductions, and taxes withheld by employers
What is a tax return
200
A proportional tax on individual income after an income threshold has been reached
What is the flat tax
200
This tax is placed on tangible and intangible possessions, such as real estate, buildings, furniture, stocks, bonds, and bank accounts
What is property tax
200
A benefit of the flat tax is to do this
What is simplify the tax process.
200
This is a federal health-care program for senior citizens
What is Medicare
300
A relatively high tax on socially undesirable products, such as tobacco is called this
What is a sin tax
300
Under which type of tax do individuals with higher incomes pay a smaller percentage than do those with lower incomes?
What is Regressive
300
Intergovernmental revenues are generally intended for these programs
What is education and public welfare
300
The alternative minimum tax requires this
What is requires people to pay a minimum tax of 20 percent.
300
This tax is placed on the value added at every stage of the production process
What is the value-added tax
400
This principle states that those who benefit from government goods and services should pay in proportion to the amount of the benefits they receive.
What is the benefit principle of taxation
400
Medicare tax is 1.45 percent of income, with no limit on the amount of income taxed. This is an example of which type of tax?
What is Proportional
400
This system requires employers to deduct income taxes from employees' paychecks and send them directly to the IRS
What is payroll withholding system
400
These are exceptions in the tax law that allow some people to avoid paying taxes
What is a tax loophole
400
A tax paid by corporations on their profits
What is the corporate income tax
500
The final burden of a tax is called this
What is the incidence of a tax
500
The tax on the transfer of property when a person dies is called this
What is an estate tax
500
This tax is placed on the manufacture and sale of selected items
What is excise tax
500
A reduction in business taxes based on investment in new plants and equipment is called this
What is investment tax credit
500
These are profits from the sale of an asset held for 12 months