Progressive Tax System
1. What is a progressive tax system? How does it differ from a regressive tax system?
A progressive tax system is people who get paid more have to pay more money on their income taxes than someone who makes less money. These differ because a progressive tax system is when someone who makes more money has to pay mire and their taxes than someone who makes less n=money and a regressive tax system is when everybody has to pay the same amount whether or not you get paid more or less.
2. What is gross income? What types of income are included in gross income?
A gross income is a point for determining the income tax of people, corporations, and estates whether you are a resident or a non resident. The types of incomes that are included in gross incomes are …show more content…
people, corporations, estates and trusts.
3. What is the alternative minimum tax?
The alternative minimum tax is when people who make a higher income they make sure that they pay there share of the taxes.
4. What is a tax audit? What are some different types of audits?
A tax audit is a examination of tax returns by the IRS so you know that all your incomes and deductions are accurate or simply means that the IRS are taking a closer look at all of your incomes and deductions so you know that they are okay to go.
5. What are two ways that a person's wealth may be taxed? Describe these taxes.
Two ways that a persons wealth may be taxed is Estate taxes which are when someone dies the taxes are made on the persons estate.
The second way is Inheritance taxes which are when someones taxes are based on there property.
Critical Thinking Questions
1. What are some strategies that you can use to prepare to file taxes each year?
Some strategies that you can use to prepare to file taxes each year are to be organized and figure out the best place to get your taxes done at. The reason why you should be organized when going to get your taxes done is because if you do not have all of the materials that you must have to get your taxes done then you are not able to get them done. The reason why you should figure out where to go in advance is because some places you have to pay more to get your taxes done than it would somewhere else.
2. What are the benefits of taxes for societies and individuals?
The benefits of taxes for societies and individuals are that taxes pay for any public education, it pays for any public transportation, and it also pays for public roads to be fixed or built.
3. How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence financial
plan.
Taxes influence responsible financial planning because you have to make sure not to mess anything up. Also because you have to be organized when doing your taxes and you must be responsible.
4. What are three types of taxes that you pay (or are likely to pay in the future)? Describe these types of taxes.
Three types of taxes that you have to pay are Income taxes, Inheritance taxes, and Estate taxes. Income taxes are taxes that imposed on how much money someone makes in 1 year. Inheritance taxes are taxes that you have to pay on any property that you are give after someone passes away. Lastly Estate taxes are fees or fines that a person has to pay after a relative or someone in there family passes away.
A progressive tax system is people who get paid more have to pay more money on their income taxes than someone who makes less money. These differ because a progressive tax system is when someone who makes more money has to pay mire and their taxes than someone who makes less n=money and a regressive tax system is when everybody has to pay the same amount whether or not you get paid more or less.
2. What is gross income? What types of income are included in gross income?
A gross income is a point for determining the income tax of people, corporations, and estates whether you are a resident or a non resident. The types of incomes that are included in gross incomes are …show more content…
people, corporations, estates and trusts.
3. What is the alternative minimum tax?
The alternative minimum tax is when people who make a higher income they make sure that they pay there share of the taxes.
4. What is a tax audit? What are some different types of audits?
A tax audit is a examination of tax returns by the IRS so you know that all your incomes and deductions are accurate or simply means that the IRS are taking a closer look at all of your incomes and deductions so you know that they are okay to go.
5. What are two ways that a person's wealth may be taxed? Describe these taxes.
Two ways that a persons wealth may be taxed is Estate taxes which are when someone dies the taxes are made on the persons estate.
The second way is Inheritance taxes which are when someones taxes are based on there property.
Critical Thinking Questions
1. What are some strategies that you can use to prepare to file taxes each year?
Some strategies that you can use to prepare to file taxes each year are to be organized and figure out the best place to get your taxes done at. The reason why you should be organized when going to get your taxes done is because if you do not have all of the materials that you must have to get your taxes done then you are not able to get them done. The reason why you should figure out where to go in advance is because some places you have to pay more to get your taxes done than it would somewhere else.
2. What are the benefits of taxes for societies and individuals?
The benefits of taxes for societies and individuals are that taxes pay for any public education, it pays for any public transportation, and it also pays for public roads to be fixed or built.
3. How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence financial
plan.
Taxes influence responsible financial planning because you have to make sure not to mess anything up. Also because you have to be organized when doing your taxes and you must be responsible.
4. What are three types of taxes that you pay (or are likely to pay in the future)? Describe these types of taxes.
Three types of taxes that you have to pay are Income taxes, Inheritance taxes, and Estate taxes. Income taxes are taxes that imposed on how much money someone makes in 1 year. Inheritance taxes are taxes that you have to pay on any property that you are give after someone passes away. Lastly Estate taxes are fees or fines that a person has to pay after a relative or someone in there family passes away.