Tax Systems and Their Characteristics

A mandatory Payment to the Government for public services.

• Proportional Tax

• Tax

• Tax Incentive

• Estate Tax

A Tax system where everyone pays the same percentage of their income

• Proportional Tax

• Tax Incentive

• Regressive Tax

• Individual Income

A Tax system where the tax rate increases as income increases

• Withholding

• Tax Credit

• Regressive Tax

• Progressive Tax

A Tax system where lower-income individuals pay a higher percentage of their income

• Tariffs

• Gift Tax

• Regressive Tax

• Estate Tax

A tax on the profit of business or corporation.

• Tariffs

• Progressive Tax

• Tax Base

• Corporate Income Tax

The Total Amount of income or property subject to taxation

• Tax Base

• Estate Tax

• Individual Income Tax

• Proportional Tax

When employers deduct taxes from employees' paychecks and send them to the government.

• Individual Income Tax

• Withholding

• Corporate Income Tax

• Tax Credit

A tax on earnings from wages, salaries, or other sources

• Tax credit

• Individual Income Tax

• Tax

• Gift Tax

A form filed to report income, calculate taxes owed, and claim refunds.

• Tax Credit

• Tax Return

• Tax Dedication

• Tax Incentive

A tax on the value of a deceased person's estate.

• Tax Credit

• Gift Tax

• Tax Incentive

• Estate Tax