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Government Chapter 16 Test Review

Terms in this set (42)

Why does the government tax?
To raise money to finance the government
What are the three limitations on taxing?
1. Tax must be made public
2. Taxes on exports are prohibited
3. Direct taxes must be equally apportioned
What is the implied limitation?
Federal taxes cannot be imposed on state governments when they're providing public education, furnishings, healthcare, or building streets and highways
What is an example of a direct tax and an indirect tax?
Direct tax: Corporation tax, income tax, and social security
Indirect tax: sales tax, value added tax, and goods and services tax
When was the income tax first used?
In 1861 to help pay for the Civil War
What amendment allowed Congress tax individual and times?
The 16th amendment
What is the largest source of federal revenue?
Income tax
What is a persons taxable income?
Once total income in the previous year minus certain exemptions and deductions
When must taxes to be filed?
April 15th
To whom are they filed?
The IRS
How do you most people pay their taxes?
With a withholding plan (pay as you go)
What is the most complicated at all taxes?
Corporation income tax
What groups are tax-exempt?
Nonprofit organization's (Churches, Charitable foundations)
What is an excise tax? Give an example
Tax laid on the manufacture, sale, or consumption of goods. Examples are gasoline, oil, tires, tobacco, liquor, firearms, telephones and airlines
What are the three social welfare programs?
FICA, Medicare, and unemployment
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