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.