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Types and uses of taxes

Specific taxes- Key Concepts-Benchmark C-1A-H7

AB
Social Security taxGovernment insurance that is used mainly to pay income to retired people, disabled people, widows and widowers.
income taxA tax on the income a person earns.
sales taxA tax levied on most items sold in a state.
tariffA tax on products imported from foreign countries.
excise taxTax on luxury items, tobacco, alcoholic beverages, and gasoline.
estate taxTax on all the wealth a person leaves.
finesMoney paid by a citizen as a penalty for breaking certain laws.
user feeA charge for the use of a product.
proportional taxA tax that takes the same percentage of all incomes.
progressive taxTax that takes a larger percentage from higher incomes than from lower incomes.
regressive taxTax that takes a larger percentage from lower incomes than from higher incomes.
gift taxA tax that must be paid by any person giving a gift worth more than a certain amount.


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