Tax Vocab Chapters 1-9

Tax Vocab Chapters 1-9 - Tax Vocab. Chapters 1-9 1. Tax- a...

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Tax Vocab. Chapters 1-9 1. Tax- a payment to support the cost of government. A Tax differs from a fine or penalty imposed by a government because a tax is not intended to deter or punish unacceptable behavior. 2. Taxpayer- any person or organization required by law to pay a tax to a governmental authority. In the U.S. the term person refers to both natural persons (individuals) and corporations. 3. Incidence- the ultimate economic burden represented by the tax. 4. Jurisdiction- the right of government to levy tax on a specific person or organization. Exists b/c of some rational linkage between the government and the taxpayer. The federal government has jurisdiction to tax any individual who is a U.S. citizen or permanently resides in this country. The government also claims jurisdiction to tax individuals who are neither U.S. citizens nor residents but who earn income from a source within the U.S. 5. Flat rate- a simple percentage that applies to the entire tax base. 6. Graduated rate- multiple percentages that apply to specified brackets of some tax base. 7. Tax brackets- the portion of a tax base subject to a given percentage rate in a graduated rate structure. 8. Revenue- the total tax collected by the government and available for public use. 9. Event/Transaction Based- a tax imposed on the occurrence of a certain event or transaction. 10. Activity Based- a tax imposed on the results of an ongoing activity in which persons or organizations engage. 11. Income Tax- tax imposed on the periodic inflow of wealth resulting from a person’s economic activities. 12. Earmarked tax- a tax that generates revenues for a designated project or program rather than for the government’s general fund. 13. Ad Valorem Tax- tax based on the value of property. 14. Realty- Land and whatever is erected or growing on the land or permanently affixed to it.
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15. Real property taxes- levied annually and are based on the market value of property as determined by the local government. 16. Tax Assessors- elected or appointed government officials responsible for deriving the value of realty and informing the owners of the assessed value. 17. Abatements- a property tax exemption granted by a government for a limited period of time. 18. Personalty- any asset that is not realty. 19. Sales tax- a general tax levied on the retail sale of goods and services. 20. Use tax- a tax levied on the ownership, possession, or consumption of goods if the owner did not pay the jurisdiction’s sales tax when the goods were purchased. 21. Excise Tax- a tax levied on the sale of certain goods such as cigarettes and alcohol. 22. Employment Tax- taxes earmarked to pay for Social Security and Medicare. 23.
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This note was uploaded on 08/08/2011 for the course ACCT 3843 taught by Professor Kaden during the Spring '09 term at Arkansas.

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Tax Vocab Chapters 1-9 - Tax Vocab. Chapters 1-9 1. Tax- a...

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