Chapter 9 – Source of Government Revenue
9-2 The Federal Tax System
CA Standards:
12.3 Students analyze the influence of the federal government on the
American economy.
Objectives:
• Explain the progressive nature of the individual income tax.
• Explain the nature of FICA taxes.
• Describe the importance of the corporation tax structure.
• Identify other major sources of federal revenue.
Write definition of key terms found on
page 222 Use glossary in textbook
Read pages 222 - 226
Economics: Principles & Practices
Prepare for Open notebook Quiz
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 Key Terms page 216
Individual Income Tax
Payroll With-holding System
Internal Revenue Service
Tax Return
Indexing
FICA
Medicare
Corporate Income Tax
Excise Tax
Estate Tax
Gift Tax
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The federal government collects taxes from
a number of sources. The most important
revenue sources are individual income taxes, Social
Security taxes, and corporate income taxes.
1. What are the three most important sources
of revenue for the federal government?
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- Individual income taxes
- FICA or Social Security taxes
- Corporate income taxes
2. How is the individual income tax paid in
most cases?
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- through payroll deductions
3. Is the individual income tax a proportional,
progressive, or regressive tax?
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- progressive
4. What does FICA stand for?
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- Federal Insurance Contributions Act
5. What are the two components of FICA?
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- Social Security
- Medicare
6. What are five other forms of federal
taxation?
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Excise taxes
Estate taxes
Gift taxes
Custom duties
User fees
Be prepared for open
notebook quiz