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List and discuss the bases of formal power.
Benefits Principle
A tax policy principle suggesting that taxes should be levied according to the benefits received by the taxpayer from government services.
Marginal Tax Rate
The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.
Taxable Income
The portion of an individual's or corporation's income used to determine how much tax is owed to the government in a specific tax year.
Progressive Tax
A tax system in which the tax rate increases as the taxable amount increases, typically structured to tax higher income earners at a higher rate.
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