Tax: a mandatory financial charge imposed by the government on individuals or businesses to fund public expenditures
Tax base: the total amount of income, property, goods, sales, or other assets subject to taxation
Tax brackets: divisions of income or assets into different ranges, each of which is taxed at a different rate
Sales tax: a tax imposed on the sale of goods and services
Internal Revenue Service (IRS): the agency of the U.S. federal government responsible for collecting taxes and enforcing tax laws
Payroll tax: a tax that is deducted from employees' salaries and paid to the government by the employer
Excise tax: a tax on specific goods such as alcohol, tobacco, or gasoline
Gas tax: a tax on the sale of gasoline used to fund transportation infrastructure
Property tax: a tax on the value of real estate or personal property
Progressive tax: a tax system in which the tax rate increases as the taxable amount increases
Regressive tax: a tax system in which the tax rate decreases as the taxable amount increases
Tax wage: the amount of money deducted from an employee's wages to pay taxes
Externality: a cost or benefit that affects a party who did not choose to incur that cost or benefit