1. Equity (fair)
2. Simplicity (easy to understand)
3. Efficiancy (easy to collect and cost efficiant)

1. Benefit Principle
2. Ability to Pay

1. Proportional
2. Regressive
3. Progressive

 finding a flaw in tax laws that allow some people to avoid paying taxes

Tax on most consumer goods

Varies within each state

- Principle of taxation

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Those who benefit from the g or s should pay in proportion to the amount of belief received

- Principle of Taxation

Belief that people should be taxed on their ability to pay

The same % of tax on everyone regardless of income.

Imposes a higher % of tax on people with a higher income

Tax that imposes a higher rate on low incomes than on high incomes

Tax on income up to $80,400. If you make more than this you don’t have to pay a tax on the amount above it

If you made $80,400 or less you pay around 7.5 cents per dollar earned in SS tax

the branch of government in charge of collecting taxes

- File a tax return in April - an annual report

Federal Insurance Contributions Act

Controls SS Tax and Medicare

tax on corporate profit

tax on non-necessary/harmful wants such as alcohol and ciggs

Tax on transfer of property when a person dies

tax on donations of money or wealth paid by the giver. This is done to make sure the wealthy do not give away their estates before their death.

Tax on paid goods brought in from other countries