W!SE Taxation Pratice

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A term that best describes your gross pay after taxes are deducted is: Take-Home Pay, Net Worth, Assets, Total Revenues

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Take-Home Pay

Front

The term that best describes money left over after paying all your bills (fixed & other living expenses) and your taxes, is:

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Discretionary Income

Front

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

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Payroll Deductions

Front

A form of indirect tax, imposed by the government. Also known as a "consumption tax."

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Sales Tax

Front

These taxes, also called "sin taxes" which began as a form of luxury tax, are taxes paid on the purchase of goods to encourage or discourage societal behaviors.

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Excise Taxes

Front

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

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Progressive Tax

Front

A tax in which the tax rate is a larger burden on the low-income payers and less of a burden on high-income payers.

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Regressive Tax

Front

An income tax in which the tax rate is fixed (the same percentage rate), no matter what the taxable amount is.

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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?)

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Treasury Department

Front

A person complains about how expensive it is to be a cigarette smoker. One of the reasons cigarettes are so expensive is that

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the government imposes an excise tax on them.