Chapter 01 Individual Taxation: Intro. to Taxation, Income Tax Formula, and Form 1040

Intro. federal tax system, broad overview of tax formula, rate structures, and simplified income tax formula, form 1040.

Progressive Rate Structure

Tax in which the tax rate increases as the tax based increases, the federal income tax is most common example in the US

Proportional rate structure (Flat Tax)

A tax structure in which the tax rate remain remains the same regardless of the size of the tax base

Regressive rate structure

A tax structure in which the tax rate decreases as tax base increases.

The Marginal tax rate

The portion of tax paid on the next dollar of income