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Chapter 6: Q 6.2 (page 124)

Explain the structure of the U.S. income tax system.

Short Answer

Expert verified

The U.S. income tax system emphasizes Personal Income Tax and Corporate Tax.

Step by step solution

01

Step 1. Definition of tax rate

The proportion of tax base that has to be paid to the government.

02

Step 2. The structure of the U.S. income tax system.

The structure consists of :

(a) Federal Personal Income Tax - The residents and citizens pay federal income taxes on taxable income including income earned abroad.

(b) The Corporate Income Tax - The corporations are taxed on the difference in their revenue and expenditures.

(c) Society and Unemployment Tax - The taxes endured by the Social Security program and retirement endure people.

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Most popular questions from this chapter

Understand the key factors influencing the relationship between tax rates and the tax revenues governments collect.

Why do you suppose that economists commonly refer to the elimination of all disability payments from the people able to work part time as a 'tax' imposed on disabled individual who is willing and able to earn part time income.

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If average income tax rates paid by lowest income taxpayers were increased to equality with those paid by the highest income taxpayers, would the US income tax system more or less progressive ? Explain your reasoning .
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