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10 Cards in this Set
- Front
- Back
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Tax System (most common)
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1.) Individual Income
2.) Social Insurance 3.) Sales 4.)Property 5.) Excise |
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Individual Income Taxes
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federal, local and state gov'ts tax---the wages, salaries, and other income of households and the profits of firms.
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Social Insurance Taxes
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Federal gov't taxes wages & salaries to raise revenue for Social Security and Medicare Systems.
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Sales Taxes
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State & Local Gov'ts tax retail sales of most products besides food.
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Excise Taxes
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Federal Gov't and some state Gov'ts levy excise taxes on specific goods like: gasoline, cigarettes and beer.
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The Federal Gov't raises more than _______ of its revenue from the individual income tax and from social insurance taxes.
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--80%
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Regressive Tax
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A tax for which people with lower incomes pay a higher % of their income in tax than do people with higher incomes.
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Progressive Tax
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A tax for which people with lower incomes pay a lower % of their income in tax than do people with higher incomes.
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Marginal Tax Rate
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The Fraction of each additional dollar of income that must be paid in taxes.
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Average Tax Rate
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Total Tax paid divided by total income.
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