Taxes & Government Spending 14.1-2

These are execptions or oversights in the tax law allowing taxpayers to avoid paying taxes.

• tax options
• tax loopholes
• tax incidence
• tax schedule

This is a general state or city tax levied on a product at the time of sale.

• sales tax
• gift tax
• estate tax
• property tax

This tax is levied on the wages, salaries, and other income that a person receives in a given year.

• business tax
• corporate income tax
• individual income tax
• marriage income tax

This is the branch of the U.S. government Tresury Department that collects taxes.

• FDIC
• IPS
• UPS
• IRS

This principal of taxation is based on the belief that taxes should be paid according to the level of income regardless of benefits received.

• ability-to-pay
• required-to-pay
• need-to-pay
• benefit-to-pay

Another name for this is a flat tax, which is a percentage of income paid in taxes is the same regardless of the level of income received.

• proportional tax
• average tax
• progressive tax
• regressive tax

Tax where percentage of income paid in tax rises as level of income rises.

• proportional tax
• average tax
• progressive tax
• regressive tax

Tax where percentage of income paid in tax goes down as income rises.

• proportional tax
• progressive tax
• regressive tax
• ability tax

This is when you tax an item on the value that is added at every stage of the production process. This is done mostly in European countries.

• VAT
• MIT
• MAT
• VIT

This is when you have profits from the sale of an asset that you have held for a period of 12 months or longer.

• alternate gains
• capital gains
• nominal gains
• profit gains