Chapter 12 Paying for Government

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

Bond

A certificate stating that the government has borrowed a certain sum of money from the owner of the bond

Estate tax

A federal tax on all wealth a person leaves

Tax

A payment of money citizens and businesses must make to help pay the costs of government

Regressive

A sales tax is a what type of tax?

Property tax

A tax on value of the property owned by a person or by a business

Gift tax

A tax paid by anyone who receives a gift worth more than $10,000

Progressive tax

A type of tax that takes a larger percentage of income from higher income groups to low income groups

Regressive tax

A type of tax that takes a larger percentage of income from low income to high income

Exemptions

Amounts allowed to deduct, or subtract for each dependent

Sales tax

Collected on most products sold

Excise taxes

Collected only on services and goods, usually luxury items

Real property

Consists of Land, buildings, other structures

Personal property

Consists of stocks, bonds, jewelry, cars, and boats

Ability to pay

First principle of taxation

Convenient collection

Fourth principle of taxation

Surplus

Government collects more money than it spends

Balanced budget

Means its revenues equal its expenditures

Social Security tax

Money From this tax is used mainly to provide income to retired people and people with disabilities

Fine

Money charged as a penalty for breaking certain laws

Equal application

Second principle of taxation

Fees

Small payments

Inheritance tax

Tax based on the portion of the estate received by an individual

Tariff

Taxes on products imported from foreign countries

Income taxes

Taxes on the income that individuals and companies earn

Deductions

Taxpayers also are allowed to deduct certain expenses such as?

Taxable income

The amount on which individual income tax is paid

Revenue

The chief purpose of taxes is to raise money

Profit

The income a business has left after paying its expenses

Interest

The payment made for the use of the money

Easy payment

Third principle of taxation

National debt

Total amount of money owed by the U. S. Government, plus the interest that must be paid on this borrowed money

Deficit

When government spends more money than it collects


Ensembles d'études connexes

Small Arms Familiarization - Navy Recruit Knowledge

View Set

unit 2, what is great about a zoo?

View Set

Chapter 4 Short Answer Whist Final

View Set

Chapter 40: Caring for Clients with Neurologic Deficits

View Set

High Risk Gestational Conditions

View Set

Chapter 15 - Chapter Challenge - Medical Overview

View Set

Ch 44: Nursing Care of a Family when a Child has a Hematologic Disorder

View Set

VHL Prespectivas Lección 3, Estructuras 3.2: Object Pronouns

View Set