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12 Cards in this Set
- Front
- Back
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a payment required by a local, state, or federal government of individuals and organizatons that have property, receive income, or engage in certain activities
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tax
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philosophy of taxation stating that those who receive the benefits of a particular public expenditure should pay for it
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benefits-received philosophy
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philosophy of taxation stating that those with higher incomes should pay proportionally more taxes than those with lower incomes
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ability-to-pay philosophy
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tax approach requiring those who earn more to pay more in taxes
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progressive tax
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tax approach that takes a smaller percentage of income as income rises
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regressive tax
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the tax rate applied to the last dollar of earnings
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marginal tax rate
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amount of taxes paid divided by income; also called the effective tax rate
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average tax rate
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a notice sent to a taxpayer from the IRS correcting an oversight or error and indiviating additonal taxes owed
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automated adjustment notice
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thorough examination by the IRS of all or part of a tax return
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tax audit
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an IRS audit that takes place by mail
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correspondence audit
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legally reduiving the amoung of taxes you pay
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tax avoidance
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illegally reducing the amount of taxes you pay
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tax evasion
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