Subsidy free child care child support remove welfare

  • No School
  • NONE 0
  • Notes
  • DrRockNarwhal7758
  • 17
  • 100% (3) 3 out of 3 people found this document helpful

This preview shows page 6 - 7 out of 17 pages.

subsidy), free child care, child support, remove “welfare lock” (unlink cash welfare from other in-kind benefits).12.Describe the major types of taxes. Distinguish between direct and indirect taxes.The five most common types of taxes are those on: Earnings; individual income; corporate income; wealth andconsumption. The first kindof tax is on earnings. Apayroll taxis a tax levied on income earned from one’s job.Examples include taxes for Social Security, Medicare, and Unemployment Insurance.The second typeof taxesis on individual income, which includes broader sources than earnings.Individual income taxis a tax paid onindividual income accrued during the year. Examples include interest earnings and dividend income. In manycases, the tax applies to family, not individual, income. Capital gainsare earnings from selling capital assets.Stocks, paintings and houses are all examples. A third kindof tax is on corporations. Thecorporate income taxis tax levied on the earnings of corporations. If corporations were not taxed, the earnings of the owners of capitalmight otherwise escape taxation. A fourth typeof tax is on accumulated wealth.Wealth taxesare taxes paid onthe value of the assets held by a person or family. Examples of wealth might include real estate or stocks.Property taxesare a form of wealth tax based on the value of a house and the land on which it is built.Estatetaxesare a form of wealth tax based on the value of the estate left behind when one dies. The fifth, and mostcommon source of taxation around the world, is a consumption tax.Consumption taxis a tax paid on individualor household consumption of goods (and sometimes services).Sales taxesare taxes paid by consumers tovendors at the point of sale. Anexcise taxis a tax paid on the consumption of a particular good (cigarettes andgasoline are examples).Payroll, income, and wealth taxes are calleddirect taxes, because they directly tax individual resources.Consumption taxes are calledindirect taxes, because they tax the use of the resources rather than the resourcesthemselves.Indirect taxes are anonymous, all taxpayers pay the same rate of tax. However, direct taxes dependon personal characteristics. Also their visibility is different, indirect taxes are included in the prices, while directtaxes not.
13.Explain the computation of a tax: tax base, tax rates, and taxes paid. (xeroxi minda!)

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 17 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
N/A
Professor
NoProfessor
Tags

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture