Government Chapter 16 Test Review

Why does the government tax?

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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?

What is a persons taxable income?

Once total income in the previous year minus certain exemptions and deductions

When must taxes to be filed?

To whom are they filed?