02.03 Sharing With Uncle Sam – Flashcards
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Progressively
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as income rises, refers to whether the proportion of income to taxes increases, decreases, or stays the same support or use of economic policies that serve to restrict trade between countries
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Indirect Taxes
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are collected when a person pays for a good or service seller must submit these taxes to the government example:sales taxes
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Direct Taxes
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paid straight to the government example:income taxes
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withholding
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keeping a portion of wages in anticipation of taxes owed
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with federal income taxes most people practice
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withholding
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Corporate Income Tax "Death" Tax Income Tax Annual Property Tax
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Direct Taxes
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Sales Tax Gasoline Tax Taxes on sale of property 9-1-1 Service Fee
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Indirect Taxes
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Proportional Tax System
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The tax rate is the same for all income levels
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Flat tax
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The rate is the same but not the amount paid in taxes since it is based on income
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Regressive Tax System
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Tax rate is same regardless of income level Proportion of income that goes toward taxes decreases as you earn more income
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Progressive Tax System
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As your income increases the percentage of taxes paid to the government also increases
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Marginal tax
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the tax percentage that applies to the last dollar of income earned
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Taxable income
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the amount of income subject to income tax under the law after deductions and credits
