Progressive Tax System

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1. What is a progressive tax system? How does it differ from a regressive tax system?

A progressive tax system means that the more money you make the higher interest that you have to pay. It differs from a regressive tax system because in a regressive tax system they charge everyone the exact same amount.
2. What is gross income? What types of income are included in gross income?
Your gross income is all of your sources of income. Some types of income that are included in your gross income are what you make from your job/s, investment income, alimony, unemployment, etc.
3. What is the alternative minimum tax?
The alternative minimum tax is an income tax that increases tax on those with higher income even if they have deductions that that …show more content…

What are two ways that a person's wealth may be taxed? Describe these taxes.
Estate taxes are taxes on a person’s estate when they person die. Inheritance tax is a tax on the property or things that someone has passed on to someone else.
Critical Thinking Questions

1. What are some strategies that you can use to prepare to file taxes each year? What would be the benefits of these strategies?
You could use tax programs to file your taxes which help you to speed up the process of you being able to get your tax return, or you can go to an office like h&r block and have someone do your taxes for you. The advantage to this is that the professional will most likely be up to date with tax laws and be able to get you the most money back as possible.
2. What are the benefits of taxes for societies and individuals?
Taxes help your community. They are what funds public projects and helps the police department along with other community services.
3. How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence a financial plan.
If you make too much money than your income tax could be high or if you make very little but the tax is the same for everyone you could end up in a really bad financial

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