Econ Unit 5 test

What is Tax Rate

• The total income generated by a business.
• A fixed fee paid to the government annually.
• • the percentage of income or value of a good or service or asset that is paid as tax.

• The amount of money earned before taxes are applied.

What is Tax base

• •  The item that is taxed such as income, the value of good or service or property.

• The total amount of tax collected by the government.
• The percentage rate at which income is taxed.
• The total number of taxpayers in a country.

What is User Fees

• User fees are donations made to non-profit organizations.
• • A fixed charge on the use of public services.

• User fees are taxes collected by the government.
• User fees are penalties for late payments on bills.

Name 4 examples of government services paid by federal government.

• 
  

  Military, National Parks, Social Security, Interstate Transportation
  

• State tax rebates
• Public transportation subsidies

Name the main sources of income for Federal Government.

• Public donations
• Government grants and subsidies
• Foreign investments
• • Individual and Corporate Income Tax

  • Social Security Tax

  • Medicare Tax

What is Individual Income tax

• A tax on corporate profits.
• A tax on property ownership.
• A tax imposed on the income of individuals by the government.
• A tax on sales transactions.

What is a Corporate Income tax

• A tax on the assets of corporations.
• A tax on individual income.
• A tax on the income or profit of corporations.
• A tax on sales made by corporations.

What is payroll tax

• A tax on corporate profits
• A fee for processing payroll documents
• • Tax paid by companies based on the wages of its employees such as social security and Medicare.

• A tax on property owned by individuals

What is Social Security

• Social Security is a federal program that provides financial support to retirees, disabled individuals, and survivors.

• Social Security is a tax on income for funding public schools.
• Social Security is a state-run initiative for local communities.
• Social Security is a private insurance program for employees.

Who does Medicare provide service for

• Only individuals with private insurance
• All individuals regardless of age or health status
• Individuals under 18 years old
• •  Provides health insurance for qualified retired persons.