Final answer:
Taxes such as income tax, corporate income tax, sales tax, FICA, unemployment, excise, estate, capital gains, gift, import, and sin taxes finance government operations with variations in progression, proportionality, and regressivity applied based on income levels and specific goods or transfers.
Step-by-step explanation:
Taxes are essential to financing government operations and come in various forms. Income tax is a tax on an individual's wages or salary, and it's a progressive tax, meaning those with higher incomes pay a higher percentage of their income. Corporate income tax is similar to income tax but applies to a company's profits.
Sales tax is imposed on business transactions, particularly the sale of goods and services, and is a proportional tax. FICA taxes refer to Social Security and Medicare taxes and are paid by both employers and employees to fund these social insurance programs. Unemployment taxes are paid by employers to provide funds for unemployment compensation for laid-off workers.
Excise taxes are specific taxes levied on the sale or production of certain goods and often include alcohol, gasoline, and tobacco. Estate taxes are imposed on the transfer of the estate of a deceased person. Capital gains tax applies to increases in the value of owned assets when they are sold.
Gift taxes are imposed on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. Import taxes, also known as customs duties, are taxes on goods brought into the country. Finally, 'sin taxes' are a form of excise tax placed on items considered harmful, such as tobacco and alcohol, to discourage their use.