| Question |
Answer |
| Money collected by the government through taxes |
REVENUE |
| Taxes that take a larger share of income as the amount of income grows |
PROGRESSIVE TAXES |
| Taxes for which the rate stays the same regardless of income; also called flat taxes |
PROPORTIONAL TAXES |
| Taxes that take a smaller share of income as the amount of income grows |
REGRESSIVE TAXES |
| Stated amount taxpayers may subtract from adjusted gross income instead of itemizing their deductions |
STANDARD DEDUCTION |
| Income ranges to which different tax rates apply |
TAX BRACKET |
| Willful failure to pay taxes |
TAX EVASION |
| A tax on the sale or use of specific products or transactions |
EXCISE TAX |
| An amount taxpayers may subtract from their income for each person who depends on their income to live |
EXEMPTION |
| All the taxable income received during the year, including wages, tips, salaries, interest, dividends, alimony, and unemployment compensation |
GROSS INCOME |
| Gross income minus allowed adjustments |
ADJUSTED GROSS INCOME |
| Money paid for a former spouse to support dependent children |
ALIMONY |
| Expenses the law allows taxpayers to subtract from their adjusted gross income to determine their taxable income |
DEDUCTION |
| Income on which you will pay tax |
TAXABLE INCOME |
| An examination of a tax return by the IRS |
AUDIT |
| An amount subtracted directly from the tax owed |
TAX CREDIT |
Biology Lab Midterm
