Income Tax terms starting with P

8 terms

1. payroll taxes Include Social Security and Medicare taxes.
2. personal exemption Can be claimed for the taxpayer and spouse. Each personal exemption reduces the income subject to tax by the exemption amount.
3. Personal Identification Number (PIN) Generally a four-character number or word, the PIN is the secret code given to credit or debit cardholders enabling them to access their accounts.
4. Progressive tax In a progressive, or graduated, income tax system, taxpayers with higher incomes are taxed at higher rates that those with lower incomes.
5. property taxes Taxes on property, especially real estate, but also can be on boats, automobiles (often paid along with license fees), recreational vehicles, and business…
6. proportional tax A tax that takes the same percentage of income from all income groups.
7. protective tariff A tax levied on imported goods with the purpose of reducing domestic consumption of foreign-produced goods.
8. public goods and services Benefits that cannot be withheld from those who don't pay for them, and benefits that may be "consumed" by one person without reducing the amount of the…