CHAPTER 1 Notes - CHAPTER 1 NOTES TAX 4001 2011/2012 Major...

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CHAPTER 1 NOTES TAX 4001 2011/2012
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Major Concepts Types of Taxes Characteristics of Taxes Explicit vs. Implicit Taxes Objectives of Taxes Basic Tax Formula – Individuals Basic Tax Formula - Corporations
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Types of Taxes Income Federal State Local Payroll Taxes FICA Medicare Sales Tax Property Taxes Excise Taxes, Estate Tax, Gift Tax, etc.
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Characteristics of Taxes Levy by a government that is uniformly applied to raise revenue for the general public good and not for individual benefit or designed to discourage certain behaviors Incidence of Taxation Proportional (flat rate) Progressive (increasing tax rates) Regressive (when tax rates decrease as income increases) Can apply to either proportional or progressive taxes Tax Rate Calculation Terminology Average Tax Rate = Taxes Paid/Taxable
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Explicit Vs. Implicit Taxes Explicit Taxes Calculated by reference to published rates Implicit Taxes
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CHAPTER 1 Notes - CHAPTER 1 NOTES TAX 4001 2011/2012 Major...

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