WGU C237 Tax 1

Two components of the tax calculation - tax base multiplied by the tax rate Characteristics of a "Tax" - >Payment required - NOT VOLUNTARY >Payment imposed by government agency (federal, state, local) >Payment not tied directly to benefit received by the taxpayer 16th Amendment - removed all doubt that a federal income tax was allowed under the U.S. Constitution Horizontal equity - taxpayers in similar situations pay the same tax vertical equity - taxpayers in different situati...