8.1 Understanding Taxes Vocab Trivia

Which is the correct statement about taxes

• an unrequired payment to a local, state, or national government.

• a required payment to a local, state, or national corporation.

• a required payment to a local, state, or national government

What is revenue?

• the income received by a corporation from taxes

• the income received by a government from taxes and nontax sources

• the income received by a corporation from taxes and nontax sources

a progressive tax is a tax for which the percentage of income paid in taxes _________ as income increases.

a proportional tax is a tax for which the percentage of income paid in taxes remains the ____ at all income levels.

Draw a picture of a tax base.

True or False, an individual income tax is based on a company's earnings at its base

• True

• False

True or False, a regressive tax is a tax for which the percentage of income paid in taxes decreases as income increases.

• True

• False

________ tax is a tax based on real estate and other property.

_____ tax is levied on the sale of goods and services in many states.

When policy makers consider a new tax, the examine who will actually bear the burden.

• incidence of tax

• incidence of revenue

• incidence of market

• incidence of sales