| A | B |
|---|
| Payroll withholding system | system requiring employer to automatically deduct you |
| tax return | annual report submitted to the IRS that shows income and deductions |
| Progressive Income Tax | The rate you pay on taxes increases as your salary increases. |
| Indexing | adjustment made that protects workers from paying more in taxes due to inflation |
| FICA | Tax that pays for Social Security Insurance |
| Medicare | Tax that pays for Federal Healthcare program |
| Payroll Taxes | Taxes deducted from your weekly paycheck. (Medicare and FICA) |
| Corporate Income Taxes | Tax that corporations pay on their profits |
| Excise Tax | A tax on goods and services on selected entities, (gasoline/ alcohol, etc...) |
| Luxury Taxes | Tax on "nice-to-haves" |
| Estate Tax | Tax on transfer of property |
| Gift Tax | $ paid on money/property given to others. |
| Customs Duty | Tax placed on goods coming in from other countries |
| User Fee | Charge for use of a good or service |
