ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Taxes are mandatory contributions levied on individuals or corporations by a government entity-whether local, regional, or national. Tax revenues finance government activities, including public works and services such as roads and schools, or programs such as Social Security and Medicare.

Detailed explanation-2: -A tax is charge imposed by federal state, and local governments to finance public services. A record of your assets and liabilities is called a cash flow statement. A budget can help you buy wisely and avoid credit problems. An expense is the amount of money you plan to use for a certain budget category.

Detailed explanation-3: -Any charge of money or property that imposed by a government upon individuals or entities that are within the government’s authority to collect. This term, however, generally does not include charges imposed in exchange for the provision of specific goods or services (e.g., bridge tolls or sanitation fees).

Detailed explanation-4: -The three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes. Other sources of tax revenue include excise taxes, the estate tax, and other taxes and fees.

Detailed explanation-5: -The federal government and most states have income taxes. The rules and rates vary between individual states and the federal system. Federal taxes are progressive, with higher tax rates on higher income levels. Some states have a progressive tax system, while others impose a flat tax rate on all income.