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| Governments biggest source of revenue. Is levied on a persons taxable income. Is a progressive tax, (a tax based on a taxpayers ability to pay, people with higher income pay more taxes), due April 15. |
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| The total income of an individual minus certain deductions and exemptions. Ex. charity donations, state/local taxes, mortagage...etc. |
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| When employeers withhold a certain amount of money from the workers wages so they don't havve to pay a large payment anually for taxes. |
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| Internal Revenue Service (IRS) |
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| A Bureau of the U.S Treasury Department, collects taxes and checks each return. They also audit, or check more closely, a small amount of returns. They also investigate suspected criminal violations of tax laws. |
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| Taxes collected to pay for major social programs like Medicare, Social Security, and unemployment compensation programs. |
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| Taxes were people with low income usually pay a larger portion of their income for taxes than people with higher income. |
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| Luxury taxes; taxes on the manufacture, transportation, sale, or consumption of goods and the performance of services. Ex. Tobacco, alcohol, oil, gas |
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| Taxes levied on goods imported into the U.S. The federal government imposses these taxes to raise revenue or to protect the nations industries, businesses, and agriculture, from foreign competition. |
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| A high customs duty, raises the price of foreign goods to make them less competative to American goods. |
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| Taxes collected by the federal government on the property and money above a set amount when someone dies. |
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| Tax exemptions , favor certain groups and encourages activities such as oil exploration. |
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| Reagan reduced various tax deductions, tax credits, tax shelters, and the number or tax brackets. |
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| Allow taxpayes to reduce their income tax liability. Generally for people in lower income brackets. |
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| The government borrows using securities, or bonds, notes, and certificates the government sells with intrest. In addition to taxes. |
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| The accumulated money the government borrows. |
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