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.