Income Taxation Lecture Notes

Flashcards covering key terms from Income Taxation notes.

Income Taxation

A tax imposed on individuals or corporations based on their income or profit.

General Principles of Taxation

Fundamental concepts that guide the imposition and collection of taxes.

Tax Credit

An amount that taxpayers can subtract from the taxes they owe to the government.

Power of Tax

The authority of the government to impose taxes to raise revenue.

Police Power

The power of the state to enact laws promoting health, safety, and general welfare.

Eminent Domain

The right of the government to take private property for public use, with compensation.

Taxation

The method by which a government collects revenue from individuals or organizations.

Reciprocity Theory

The principle that citizens pay taxes in exchange for services and protection from the state.

Fiscal Adequacy

Ensures that revenue sources meet public expenditure demands.

Double Taxation

Taxing a person or property more than once for the same reason.

Direct Taxes

Taxes that cannot be passed on to another person, paid by the same individual who bears the burden.

Indirect Taxes

Taxes that can be passed on to another party, typically the consumer.

Specific Tax

A fixed amount tax calculated based on quantity rather than value.

Ad Valorem Tax

A tax based on the value of the property.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases.

Income Tax

A tax imposed on individual or corporate income.

Tax Avoidance

Legally minimizing tax liabilities through legitimate methods.

Tax Evasion

Illegal act of not paying taxes owed.