Question: What is meant by the term tax base?

Answer: The income, property,good, or service that is subject to tax.

Question: How is the corporate tax like the personal income tax?

Answer: If the person or company are making more than another they will pay more.

Question: What is the difference between mandatory and discretionary spending?

Answer: Mandatory means they have to spend it on a certain program but discretionary gets to choose what program.

Question: What is the difference between an operating budget and a capital budget?

Answer: Operating is day to day spending and capital is for major purchases and investments

Question: Tax Base

Answer: The income property goods or services on which people pay tax

Question: Which of the following would be a progressive tax?

Answer: People earnings $35,000 pay 10 percent tax, while people earning $100,000 pay 30 percent tax

Question: What provides the largest portion of federal revenue?

Answer: Individual income taxes

Question: What is a person’s taxable income?

Answer: A person’s gross income after subtracting exemptions and deductions.

Question: What is withholding?

Answer: A way of collecting taxes from the salaries of employees

Question: Most federal mandatory spending is

Answer: Spent on entitlement