Economics Chapter 14 Taxes

a mandatory payment to a local, state or national government.

• revenue

• 16th amendment

• tax

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government income from taxes and nontax sources.

• Payment

• Money

• profits

• Revenue

All income is taxable income.

• True

• False

tax based on an individual’s income from all sources including wages, interest, dividends, and tips

• Individual Income Tax

• Wage Tax

• Excise Tax

• Property tax

sets that people who benefit directly from public goods should pay for them in proportion to the amount of benefits received.

• benefits received principle

• ability to pay principle

• pain for gain principle

• proportional principle

Which is NOT a criteria for taxation?

• Equity

• Simplicity

• Minimal

• Efficiency

a tax based on a corporation’s profits

• Revenue Tax

• Profit Tax

• Liability Tax

• Corporate Income Tax

A tax where the percentage of income paid in taxes decreases as income increases

• Progressive Tax

• Regressive Tax

• Proportional Tax

• Constructed Tax

Each type of wealth subject to taxes

• tax base

• tax code

• tax limit

• tax form

Marginal tax rates means that you only pay higher tax rates on the dollar amounts that actually appear in that tax bracket.

• True

• False