Identify the Following Terms

question 75

Short Answer

Identify the following terms.
-Dwight D. Eisenhower and June 6, 1944

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Definitions:

Average Tax Rate

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

Total Income

The sum of all earnings obtained by an individual, household, or firm, including wages, salaries, profits, rents, and other forms of revenue.

Tax Base

The total amount of assets or income that can be taxed by a government, forming the foundation of its revenue.

Progressive Tax

A tax system in which the tax rate increases as the taxable income increases, placing a larger financial burden on wealthier individuals.