What are the 2 components of taxes? - Tax rate and tax base
What are the 3 types of tax rates? - Proportional, progressive and regressive
Proportional Taxes - the rate of tax remains constant over the tax base (sales tax)
Progressive taxes - Tax rates increase as the tax base grows larger (Federal income,
gift and estate tax)
Regressive taxes - Tax rates decrease as the tax base grows larger (Federal
employment taxes such as FUTA and FICA)
What are the different tax bases? - Transactions, Property or wealth, Privileges and
rights, and income
What does Transaction taxes include? - sales and transfers of wealth
What does Property or wealth taxes include? - real estate taxes and ownership of
property
What does Privileges and rights taxes include? - the ability to use the corporate form or
to be in certain professions,excise taxes, and custom duties
What does Income taxes include? - gross or net income
After income taxes, what taxes usually affect more US taxpayers than any other type of
tax? - Transaction taxes
Taxes on the Production and Sale of Goods include? - Excise, Sales and Use and
Value added taxes
Excise taxes - levied by federal and state governments on exchanges of specified
commodities (oil, alcohol, phone service, and tobacco) or services.
Who are excise taxes levied on? - producers, resellers or consumers
Are excise taxes proportional, regressive or progressive? - Proportional they may vary
greatly from state to state.
What are Sales and Use Taxes? - Major source of income from most state and local
governments, and cover a broad base of transactions.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller VasilyKichigin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £10.92. You're not tied to anything after your purchase.
