chapter 2-3 consumer

chapter 2-3 consumer

Term Definition
Auidit An examination of income tax returns by the IRS.
Benefits. Forms of employers compensation in addition to pay.
Dividends Money paid to stockholders from the corporation's earnings.
Exemption An amount you may subtract from your income for each person who depends on your income to live.
Filing Status. Your tax-filing group based on your marital status as of the last days of the tax year.
Gross Pay The total amount an employee earns before deductions are subtracted.
Net Pay The amount left after all deductions are taken from an employee's gross pay.
Progressive Tax A tax that takes a larger share of one's income as the amount of income grows.
Proportional Tax A tax for which the rate stays the same regardless of one's income.
Regressive Tax A tax that takes a smaller share of one's income as the amount of income grows.
Tax Credit A reduction of taxes.
Tax Liability The amount of total tax owe on a year's income.
Union A group of people who work in the same or similar occupations, organized for the benefit of the employees in those occupations.
Wage A fixed hourly rate earned by employees.

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