Taxation Flashcard Review

Front

The amount withheld by an employer from an employee's earnings. Typically includes income taxes, FICA taxes, Group Insurance, Pension Contributions, etc.

Back

Payroll Deductions

Front

Also called "sin taxes," taxes paid on the purchase of goods to encourage or discourage societal behaviors.

Back

Excise Tax

Front

A tax in which the tax rate increases as the taxable amount increases.

Back

Progressive Tax

Front

A tax in which the tax rate decreases as the amount subject to taxation increases.

Back

Regressive Tax

Front

An income tax in which the tax rate is fixed, with no change as the taxable amount increases or decreases.

Back

Proportional Tax

Front

While we submit our tax filings to the IRS, where do our federal tax dollars actually go? (What department runs the IRS?)

Back

Treasury Department

Front

Our tax money is spent on all of the following EXCEPT: social security, national parks, private education, the military

Back

private education

Front

Rhondi paid a tax that was included in the price of his new Porsche. This ad valorem tax is called a/an:

Back

luxury tax

Front

Select the type of tax system that best fits the following description: “High income earners pay a higher percentage of their income in taxes than low income earners.”

Back

Progressive

Front

The primary purpose of taxes is to

Back

provide services that improve our quality of life