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Chapter2 and 3

Consumers

TermDefinition
audit An examination of income tax returns by the IRS
Benefits Forms of employer compensation in addition to pay
Dividends money pay to stockholders from the corporation's earnings
Excmption An amount you may subtract from your income for each person who depends on your income to live.
Filing Status Your tax-filing based on your marital status as of the last day of the tax year
Gross pay The total amount an employee earns before deductions are subtracted
Net Pay The a mount left after all deductions are taken from an employee's gross pay
Progressive Tax a tax that takes a large share of one's income as the amount of income gross
Proportional Tax A tax for which the rate strays the same regardless of one's income
Regressive Tax A tax that takes a smaller share of one's income as the amount of income grows
Salary a fixed annual amount of gross pay
Tax bracket an income range that a tax rate is applied to
Tax credit a reduction of taxes owned
Tax Liability the amount of total tax you owe on a year's income
Union A group of people that work in the same or similar occupation
Wage a fixed hourly rate earned by employees.
Created by: escoabry2
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