chapter 18 section 1 charles

Tax on a person's income minus exemptions and deductions
individual income tax
Tax on a corporation's income minus expenses and deductions
Corporate income tax
Taxes collected from employees and employers to pay for major social programs
Social insurance taxes
Taxes on the manufacture, transportation, sale, or use of goods and performance of services
Excise taxes
Taxes on goods brought into the country for sale; also called tariffs
Customs duties
Tax on the property and wealth (over $5 million) of a person who dies
Estate tax
Tax on gifts above $13,000 to any one person given in any one year
Gift tax
payments by individuals and businesses to support the activities of the government
Article 1 Section 8 (income taxes created by Amendment 16)
Where does the power of the federal government to tax come from?
taxes based on a person or business's ability to pay; income taxes are an example
progressive taxes
lower income people
Who benefits from progressive taxes?
individuals and companies can lower their taxes by doing certain things such as becoming more energy efficient or donating to charity
tax credits
everyone is taxed the same amount; also flat taxes; social insurance taxes are an example
regressive taxes
higher-income people
Who benefits from regressive taxes?
people living with you that rely on your money (such as children) can get you a tax break on your income tax
occurs when the amount of money spent is more than the amount of money collected
more money was collected than the government spent
Where does the US get revenue?
Defense, non-defense discretionary, social security, entitlements (medicare, medicaid), interest on the debt
What does the government use tax dollars for?