- 1 What is the correct statement about regressive tax?
- 2 What is the correct statement about the ability to pay principle?
- 3 Which tax form is given to me by my employer each tax year to show my earnings and taxes withheld quizlet?
- 4 Who is responsible for filing your federal tax return quizlet?
- 5 What is an example of regressive tax?
- 6 What are the disadvantages of regressive tax?
- 7 What are the four principles of taxation?
- 8 Do you pay more taxes if you make more money?
- 9 What are the two main principles of taxation?
- 10 Which tax form is given to me by my employer?
- 11 Is your employer responsible for filing your federal tax return?
- 12 Which of the following taxes are based on the benefits received principle?
- 13 Who is responsible for filing federal tax return?
- 14 Why do we pay taxes quizlet?
- 15 Which type of tax is collected by state and local governments but not by the federal government?
What is the correct statement about regressive tax?
Explanation: Gasoline tax is regressive because everyone regardless of their income level pay the same amount of tax per gallon of gas purchased. A progressive tax means that people that have higher incomes will pay a higher tax rate, for example, federal income taxes.
What is the correct statement about the ability to pay principle?
The ability-to-pay principle holds that those who have a greater ability to pay taxes—measured by income and wealth—should pay more.
Which tax form is given to me by my employer each tax year to show my earnings and taxes withheld quizlet?
W-2 Tax Form: Your employer gives you a W-2 form each year to show how much you were paid during the year.
Who is responsible for filing your federal tax return quizlet?
You are solely responsible for filing your tax returns. Don’t mess this up! W-4 Tax Form: A W-4 tax form is filled out by you. The W-4 tells your employer how much tax to withhold from your paycheck to pay your federal taxes.
What is an example of regressive tax?
Regressive tax, tax that imposes a smaller burden (relative to resources) on those who are wealthier. Consequently, the chief examples of specific regressive taxes are those on goods whose consumption society wishes to discourage, such as tobacco, gasoline, and alcohol. These are often called “sin taxes.”
What are the disadvantages of regressive tax?
Disadvantages of Regressive Tax
- Inequality. A regressive tax imposes a higher tax burden on those with lower incomes than those at higher incomes.
- Higher Prices. It goes without saying that the higher the tax, the higher the price.
- Reduces Choice.
- Political Unrest.
What are the four principles of taxation?
The principles of good taxation were formulated many years ago. In The Wealth of Nations (1776), Adam Smith argued that taxation should follow the four principles of fairness, certainty, convenience and efficiency.
Do you pay more taxes if you make more money?
The U.S. has a progressive tax system, using marginal tax rates. Therefore, when an increase in income moves you into a higher tax bracket, you only pay the higher tax rate on the portion of your income that exceeds the income threshold for the next-highest tax bracket.
What are the two main principles of taxation?
These are: (1) the belief that taxes should be based on the individual’s ability to pay, known as the ability-to-pay principle, and (2) the benefit principle, the idea that there should be some equivalence between what the individual pays and the benefits he subsequently receives from governmental activities.
Which tax form is given to me by my employer?
Introduction. The IRS requires employers to report wage and salary information for employees on Form W-2. Your W-2 also reports the amount of federal, state and other taxes withheld from your paycheck. As an employee, the information on your W-2 is extremely important when preparing your tax return.
Is your employer responsible for filing your federal tax return?
As an employer, you are responsible for withholding federal income tax and other payroll taxes from each employee’s paycheck and remitting it to the IRS. Each Form 941 you file reports the total amount of tax you withheld during the quarter.
Which of the following taxes are based on the benefits received principle?
The personal income tax is based on the benefits-received principle of taxation.
Who is responsible for filing federal tax return?
The personal representative is responsible for filing any final individual income tax return(s) and the estate tax return of the decedent when due.
Why do we pay taxes quizlet?
An amount of money citizens and businesses are required to pay so that the government can function and provide services. The taxes you pay support ALL things the government does.
Which type of tax is collected by state and local governments but not by the federal government?
Excise taxes are collected by federal, state, and local governments. In FY 2006, states collected more in excise taxes than federal and local governments combined—$106 million.