Topic 12 - Taxes and Taxation Review

Type of spending that Congress is required by law to include in the budget.

• Discretionary

• Mandatory

• Federal

• Deficit

A tax on the wages an employer pays its employees

• Payroll tax

• Job tax

• Working Tax

• Employee Tax

A tax structure that takes a larger share of income as income increases

• Regressive Tax

• Flat Tax

• Proportional Tax

• Progressive Tax

A tax structure that takes the same share at all income levels

• Proportional Tax

• Progressive Tax

• Regressive Tax

• Flat Tax

A tax structure that takes a smaller share of income as income increases.

• Proportional Tax

• Progressive Tax

• Regressive Tax

• Flat Tax

A type of tax on the goods and services purchased by consumers.

• Consumption Tax

• Excise Tax

• Sin Tax

• Sales Tax

A type of tax used by governments to promote social change (Often called a Sin Tax)

• Income Tax

• Estate Tax

• Excise Tax

• Inheritance Tax

All of the following were part of Adam Smith's Tax Maxims EXCEPT:

• Equity

• Certainty

• Efficiency

• Convenience

• Viability

Which of these is the best example of the Benefits-received approach to tax equity?

• A corporation pays taxes on its income

• A driver pays a fee to get their license

• Payroll taxes are withheld from your paycheck

• A percentage of large inheritances are paid in taxes

Which of these taxes is the leading source of revenue for the Federal Government?

• Corporate Income Tax

• Individual Income Tax

• Estate Tax

• Payroll Tax