Ch. 14 Flashcards
(21 cards)
simplicity, efficiency, certainty, and equity
4 characteristics of a good tax
budget in which revenues are equal to spending
balanced budget
budget for major capital, or investment, expenditures
capital budget
tax on the value of a company’s profits
corporate income tax
spending category about which government planners can make choices
discretionary spending
social welfare program that people are entitled to if they meet certain eligibility requirements
entitlements
taxes that fund social security and medicare
federal insurance contributions act (FICA)
spending on certain programs that is mandated, or required, by existing law
mandatory spending
budget for day-to-day expenses
operating budget
tax for which the percentage of income paid in taxes increases as income increases
progressive tax
tax on the value of a property
property taxes
tax for which the percentage of income paid in taxes remains the same for all income levels
proportional tax
tax for which the percentage of income paid in taxes decreases as income increases
regressive tax
income received by a government from taxes and nontax sources
revenue
tax on the dollar value of a gold or service being sold
sales tax
a required payment to a local, state, or national government
tax
income, property, good, or service that is subjected to a tax
tax base
the use of taxation to encourage/discourage certain behavior
tax incentive
the final burden of a tax
tax incidence
form used to file one’s income taxes
tax return
taking tax payments out of an employee’s pay before he or she receives it
withholding
