Text Questions 2
Review Questions
1. What is a progressive tax system? How does it differ from a regressive tax system?
A progressive tax takes a larger percentage of income from high-income groups than from low-income groups and is based on the concept of ability to pay.
2. What is gross income? What types of income are included in gross income?
Gross income is the starting point for determining Federal and state income tax of individuals, corporations, estates and trusts, whether resident or nonresident.
3. What is the alternative minimum tax?
The alternative minimum tax is an income tax imposed by the United States federal government on individuals, corporations, estates, and trusts.
4. What is a tax audit? What are some different types of audits?
A tax audit is an examination of your tax return by the IRS to verify that your income and deductions are accurate. A tax audit is when the IRS decides to examine your tax return a little more closely and verify that your income and deductions are accurate.
5. What are two ways that a person's wealth may be taxed? Describe these taxes.
Estate taxes are taxes levied on a person’s estate when that person dies. To do this, the government takes the market value of the person’s property investments, and other parts of the estate and imposes an inheritance tax on property or assets that are passed on after someone has died and bequeathed the assets to another.
Critical Thinking Questions
1. What are some strategies that you can use to prepare to file taxes each year? What would be the benefits of these strategies?
If you have experience dealing with taxes, tax forms are available online and at the library or post office for you to complete yourself. If you aren’t sure how to do your taxes, you can buy software or go online. Lastly you could hire someone to do your taxes for you.
2. What are the benefits of taxes for societies and individuals?
At the core, taxes are the mechanism by which a government is funded. Taxes pay for public
1. What is a progressive tax system? How does it differ from a regressive tax system?
A progressive tax takes a larger percentage of income from high-income groups than from low-income groups and is based on the concept of ability to pay.
2. What is gross income? What types of income are included in gross income?
Gross income is the starting point for determining Federal and state income tax of individuals, corporations, estates and trusts, whether resident or nonresident.
3. What is the alternative minimum tax?
The alternative minimum tax is an income tax imposed by the United States federal government on individuals, corporations, estates, and trusts.
4. What is a tax audit? What are some different types of audits?
A tax audit is an examination of your tax return by the IRS to verify that your income and deductions are accurate. A tax audit is when the IRS decides to examine your tax return a little more closely and verify that your income and deductions are accurate.
5. What are two ways that a person's wealth may be taxed? Describe these taxes.
Estate taxes are taxes levied on a person’s estate when that person dies. To do this, the government takes the market value of the person’s property investments, and other parts of the estate and imposes an inheritance tax on property or assets that are passed on after someone has died and bequeathed the assets to another.
Critical Thinking Questions
1. What are some strategies that you can use to prepare to file taxes each year? What would be the benefits of these strategies?
If you have experience dealing with taxes, tax forms are available online and at the library or post office for you to complete yourself. If you aren’t sure how to do your taxes, you can buy software or go online. Lastly you could hire someone to do your taxes for you.
2. What are the benefits of taxes for societies and individuals?
At the core, taxes are the mechanism by which a government is funded. Taxes pay for public