GlossaryGuide

Inflation The simultaneous increase of consumer prices and decrease in the value of money and credit.

Infant Industry A new or developing domestic industry whose costs of production are higher than those of established firms in the same industry in other countries.

Independent Contractor Performs services for others. The recipients of the services do not control the means or methods the independent contractor uses to accomplish the work. The recipients do control the results of the work; they decide whether the work is acceptable. Independent contractors are self-employed.

Income Taxes Taxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest, dividends). Income taxes can be levied on both individuals (personal income taxes) and businesses (business and corporate income taxes).

Horizontal Equity The concept that people in the same income group should be taxed at the same rate. “Equals should be taxed equally.”

Head of Household Filing Status You must meet the following requirements: 1. You are unmarried or considered unmarried on the last day of the year. 2. You paid more than half the cost of keeping up a home for the year. 3. A qualifying person lived with you in the home for more than half… Continue reading Head of Household filing status

Gross Income Money, goods, services, and property a person receives that must be reported on a tax return. Includes unemployment compensation and certain scholarships. It does not include welfare benefits and nontaxable Social Security benefits.

Gasoline Excise Tax An excise tax paid by consumers when they purchase gasoline. The tax covers the manufacture, sale, and use of gasoline.