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The standard deduction is a portion of income that is not subject to tax and can be used to reduce a tax bill instead of itemizing deductions.| Investopedia
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Itemizing deductions allows some taxpayers to reduce their taxable income, and thus their taxes, by more than if they used the standard deduction.| Investopedia
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State vs. federal income tax rates, types of income subject to tax, and more can differ. State income tax varies depending on your state. Federal income tax doesn't.| Investopedia
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An economy is a system of production and consumption activities that determine how resources are allocated among all of its participants. Learn how it works.| Investopedia
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A regressive tax is one that's applied uniformly regardless of income, unlike a progressive tax which is based on income. It places a bigger burden on low-income earners.| Investopedia
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Income tax is a tax that governments impose on income generated by businesses and individuals within their jurisdiction.| Investopedia