1. Revenues: money collected by governments to provide goods and services to the public.
2. Taxes: required payments of money to governments used to provide public goods and services
3. Voluntary compliance: describes our system of taxation that relies on the individual to report their income, calculate their tax liability, and file a tax return on time.
4. tax liability: the amount of tax that you owe
5. incidence of taxation: final burden of paying the taxes
6. direct tax: a tax that cannot be shifted to others
7. indirect tax: a tax that can be shifted to others
8. personal income tax: a tax on all forms of income an individual or household receives
9. payroll taxes: a tax on earned income collected from both employees and employers to finance specific government programs (ie FICA, unemployment)
10. corporate income tax: a tax on the accounting profits of corporations
