Describe the difference between selective and general sales taxes

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					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.

				
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posted:10/24/2012
language:English
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