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Tax True or False Challenge

Yes or No

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Test your tax knowledge: Yes or No

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Tax True or False Challenge
 

Tax True or False ChallengeOnline version

Test your tax knowledge: Yes or No

by Jaidyn Smith
1

Tariff/Custom's Duty - tax placed on imported goods.

2

Value-Added Tax - tax on the value added at every stage of the production process.

3

Appropriations - government funds earmarked for certain purposes.

4

Surcharge - additional tax added to other charges already in place.

5

Flat Tax - tax on individual income after a specified threshold has been reached.

6

Corporate Income Tax - tax on corporate profits.

7

Ability-to-Pay Principle of Taxation - belief that taxes should be paid according to level of income regardless of benefits received.

8

Capital Gains Tax - tax on profits from the sale of an asset held for one year.

9

Capital Gains Tax - tax on profits from the sale of an asset held for one year.

10

Public Debt - borrowings by governments to finance expenditures not covered by current tax revenues.

11

Sin Tax - designed to raise revenue and discourage consumption of a socially undesirable product.

12

Estate Tax - tax on the transfer of property when a person dies.

13

Benefit Principle of Taxation - belief that taxes should be paid according to the benefits received regardless of income.

14

Deficit Spending - government spending in excess of taxes and other revenues.

15

Graduated Income Tax - as income levels cross into higher brackets, only the income above that bracket's floor is subject to the higher rate, not one's entire income.

16

Expenditures - government spending.

17

Progressive Tax - percentage of income paid in tax rises as level of income rises.

18

Sales Tax - tax levied on a product at the time of sale, main source of state government revenue.

19

Property Tax - tax levied on the real (value) property of the owner.

20

Poll Tax - a capital tax levied equally on every adult in the community.

21

Regressive Tax - percentage of income paid in tax drops as level of income rises.

22

Crowding Out Effect - economic theory explaining an increase in interest rates due to rising government borrowing in the money market.

23

Gift Tax - tax on donations of money or wealth that is paid by the donor.

24

Entitlement - guarantee of access to benefits because of rights, or by agreement through law.

25

Earned Income Credit - a lower tax bracket if an individual meets seven basic criteria including making less than $19,104/year.

26

Excise Tax - general revenue tax levied on the manufacture or sale of selected items.

27

Intergovernmental Revenue - funds one level of government receives from another level of government.

28

Revenue - government income.

29

Investment Tax Credit - tax discount given to business for purchase of equipment.

30

Payroll/FICA - tax levied on employers and employees to support Social Security and Medicare.

31

Personal Income Tax - tax levied on the wages, salaries and other income of individuals.

32

Investment Tax Credit - tax discount given to business for purchase of equipment.

33

Trust Fund - special account used to hold revenues designated for specific expenditures.

34

Tax Loopholes - exception or oversight in the tax law allowing taxpayer to avoid taxes.

35

Proportional Tax - percentage of income paid in tax is the same regardless of level of income.

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