VIEWS: 3 PAGES: 9 POSTED ON: 10/24/2012
Describe the difference between selective and general sales taxes. • General sales tax applies the same tax rate to the purchase of all items. • Selective sales taxes apply a higher tax rate to the purchase of specific items. Explain what effect inaccurate assessments have on millage. • Inaccurate assessments cause the millage rate to be higher for all property tax payers. • It particularly hurts those taxpayers whose assessments are high because they also have to deal with the higher millage rates. Define progressive taxation and give one example of it. • Progressive taxation is when the tax rate that is charged increases as the person’s ability to pay the tax increases. • This means they not only pay more in taxes because they earn more, but also because their bill is calculated using a higher percentage rate. • Example: Federal Income Tax Define regressive taxation and give one example of it. • Any tax that is calculated without taking a person’s abiltiy to pay the tax into consideration. In other words, the tax bill is calculated on something other than the person’s income. • This hurts poorer taxpayers. • Examples: Property taxes; Sales taxes; $52 Emergency Medical Services tax; $10 Occupational Privilege Tax Describe the difference between real and personal property. • Real property: Real estate (land and the buildings that are on that land) • Personal: Any other property a person owns. This can be money and investments (intangible property) or actual possessions (tangible property) Describe the difference between estate and inheritance taxes. • Estate: Paid if an estate is worth over one million dollars at the time of a person’s death. Tax bill is based on the total value of the entire estate. Paid to the federal government. • Inheritance: Paid by an individual for the value of the specific items they inherit. Tax bill is based on the value of the specifc item(s) a person inherits. Define and/or give examples of both tangible and intangible personal property. • Tangible Personal Property: things whose value can be seen and touched; cars, boats, jewelry • Intangible Personal Property: things whose value is understood, but cannot actually be seen or touched; bank accounts; investments like stocks or bonds Define proportional taxation and give one example of it. • Any taxation system that charges each person the same percentage of their income • Pennsylvania income tax is an example. All Pennsylvanians pay 3.07% of their income. Explain the difference between market value and assessed value. • Market Value is what a piece of property is actually worth if it were to be bought or sold. • Assessed Value is what a county decides the property is worth for calculating your property tax bill.
Pages to are hidden for
"Describe the difference between selective and general sales taxes"Please download to view full document