ANSWER SHEET ONE
The American Tax System
Governments raise revenues through taxation, A tax is a
(1) ______ payment to government. In the Unites States, taxes (1) ______
fall into three main categories:
a. Taxes on personal or corporation income;
b. Taxes on wealth, including ownership and (2) ______; (2) ______
c. Taxes on activities, including consumption, production,
employment, etc.
Each year in April, taxpayers sort their previous year’s
income and expense records to prepare their income
tax (3) ______ They are allowed to take specific types (3) ______
of deductions and (4) ______ A deduction applies if (4) ______
they donate to the Red Cross, their (5) ______ or other (5) ______
(6) ______ organizations. (6) ______
Property taxes are levied primarily on land
and (7) ______ Death taxes are levied on (7) ______
(8) ______ by the federal government and on inheritances by (8) ______
some state governments. Besides, gift taxes are levied on the
transfer of assets.
Sales taxes are levied on the (9) ______ prices of items. (9) ______
Sometimes, the federal government may impose a value-added
tax.
Social security taxes, which are (10) ______ taxes levied (10) ______
by the federal government, are collected to finance social
insurance programs.