Describe the Components of Tax Practice

question 951

Essay

Describe the components of tax practice.

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Definitions:

Direct Taxes

Taxes that are paid directly to the government by the taxpayer, such as income tax and property tax.

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced in a country during a specific time period, used as an indicator of economic health.

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total tax paid by the total income.

Progressive

Referring to ideas, policies, or efforts that aim to instigate change or reform towards better conditions in society.