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23 Cards in this Set
- Front
- Back
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What is a tax?
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A payment to support the cost of government.
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What is an incidence of a tax?
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Refers to the ultimate burden represented by the tax.
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What is a jurisdiction?
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The right of a government to levy tax on a specific person or organization.
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What is a tax base?
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an item, occurrence, transaction, or activity with respect to which a tax is levied. Usually expressed in monetary terms.
Tax (T) = Rate (r) x Base (B) |
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Define revenue?
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Refers to the total tax collected by the government and available for public use.
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What does event or transaction based mean?
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The tax is triggered only when an event occurs or a transaction takes place.
An example is a sales tax levied on the purchase of retail goods and services. |
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What does activity based mean?
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A tax that is imposed on the cumulative result of an ongoing activity.
An annual income tax is a prime example. |
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What is an income tax?
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Is imposed on the periodic inflow of wealth resulting from a person's economic activities.
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What does it mean if something is earmarked?
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The revenues from some taxes are earmarked to finance designated projects.
For instance, the revenues from local real property taxes are typically earmarked to support public school systems. |
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What are ad valorem taxes?
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Local governments depend heavily on real property taxes and personal property taxes, which are frequently referred to as ad valorem taxes.
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What are Real property taxes?
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Levied annually and are based on the market value of the property as determined by the local government.
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What is an abatement?
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A temporary tax exemption for a limited period of time.
Governments usually grant abatement's to lure commercial enterprises into their jurisdiction, thereby creating jobs and benefiting the local economy. |
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What personalty?
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Any asset that is not realty.
Household tangibles, business tangibles and intangibles. Automobile, etc. |
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What is a sales tax?
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Typically based on the retail price of tangible personalty.
A general tax levied on the sale of goods or services. |
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What is an excise tax?
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Imposed on the retail of specific goods, such as gasoline, cigarettes, or alcoholic beverages, or on specific services, such as hotel or motel accommodations.
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What are employment taxes?
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Earmarked to pay for social security and medicare
A tax based on wages, salaries, and self-employment income. |
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What are unemployment taxes?
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A tax levied by both the federal and state governments on compensation paid by employers to their employees. Unemployment taxes are earmarked to fund the national unemployment insurance program.
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What are transfer taxes?
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A tax levied on the transfer of wealth by gift or at death and based on the market value of the transferred asset.
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What is a Value added Tax? (VAT)
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A tax levied on firms engaged in any phase of the production or manufacture of goods and based on the incremental value added by the firms to the goods.
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What is the Internal Revenue Code of 1986?
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The compilation of statutory tax laws written and enacted by the Congress and the United States.
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What is a section?
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Numerically labeled subdivision of the Internal Revenue Code. Each section contains an operational, definitional, or procedural rule relating to one of the federal taxes.
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What is a Treasury Regulation?
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The official interpretations of a statutory tax rule written and published by the US treasury.
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What is the Internal Revenue Service?
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The subdivision of the US Treasury Department responsible for the enforcement of the federal tax law s and the collection of federal taxes.
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