Chapter 1 - Chapter 1 Types of taxes and jurisdictions that...

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Chapter 1 Types of taxes and jurisdictions that use them Basic Tax Terminology -Tax rate is given by the law -Proportional tax is similar to social security and Medicare. It is a flat tax. It is capped at a certain amount. Medicare goes on forever. The higher the income the higher the rate -Progressive is when you move up brackets based on earnings. -Regressive is when you go down tax brackets based on higher income. (Ex. Monte Carlo) -The taxpayer is someone that pays the tax. If I own the house and rent it out to a student I am the taxpayer but the tenant is the incidence. If you buy something from the grocery store you are the incidence paying the sales tax but the store is the taxpayer. -Jurisdiction is where the governments would be able to tax you. US citizens living in USA pay taxes to the US government. If you are a US citizen living in Brazil then you pay their taxes as well as US taxes. However, if Brazil is 20% tax and you pay 35% in US you get to credit the 20%. Estate taxes are when you travel or are sent and earn
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Chapter 1 - Chapter 1 Types of taxes and jurisdictions that...

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