Unit 2 Flashcard Review: Overview and Federal Taxes

Front

What is the main source of income for the federal government?

Back

Income tax is the main source of income for the federal government.

Front

What type of taxes typically support local governments?

Back

Property taxes typically support local governments.

Front

Are all items purchased subject to sales tax?

Back

No, not all items purchased are subject to sales tax.

Front

Does the federal government collect property tax?

Back

No, the federal government does not collect property tax.

Front

How do you calculate taxes owed for a single filer with a taxable income of $32,500 in 2024?

Back

$1,160.00 + 12% of the amount over $11,600.

Front

What is a tax rate schedule?

Back

A tax rate schedule outlines the rates at which income is taxed based on income brackets.

Front

What is the purpose of income tax?

Back

Income tax is used to fund government services and programs.

Front

What is the difference between federal and state taxes?

Back

Federal taxes are collected by the national government, while state taxes are collected by individual state governments.

Front

What is a taxable income?

Back

Taxable income is the amount of income that is subject to tax after deductions and exemptions.

Front

What is the significance of tax brackets?

Back

Tax brackets determine the rate at which income is taxed, with higher income levels being taxed at higher rates.