Ch. 14 Taxes And Government Spending Flashcards
(32 cards)
The income received by a government from taxes and other nontax sources
Revenue
Progressive tax
A tax for which the percentage of income paid in taxes increases as income increases
Proportional tax
A tax for which the percentage of income paid in taxes remains the same at all income levels
A tax for which the percentage of income paid in taxes decreases as income increases
Regressive tax
The income property, good, or service that is subject to a tax
Tax base
A tax based on a person’s earnings
Individual income tax
A tax based on a company’s profits
Corporate income tax
A tax based on real estate and other property
Property
A tax based on goods or services that are sold
Sales tax
The final burden of a tax
Incidence of a tax
Taking tax payments out of an employees pay before he or she receives it
Withholding
A form used to file income taxes
Tax return
The earnings on which tax must be paid; total income minus exemptions and deductions
Taxable income
A set amount that taxpayers may subtract from themselves, their spouse, and any dependents
Personal exemption
A variable amount that tax payers may subtract from their gross income
Tax deduction
A variable amount that taxpayers may subtract from the total amount of their income tax
Tax credit
A tax on the total value of the money and property of a person who has died
Estate tax
A tax on the money or property that one living person gives to another
Gift tax
A tax on imported goods
Tariff
The use of taxation to discourage or encourage certain types of behavior
Tax incentive
A required payment to a local, state, or national government
Tax
Spending that Congress is required by existing law to do
Mandatory spending
Spending about which congress is free to make choices
Discretionary spending
Social welfare program that people are “entitled to” benefit from if they meet certain eligibility requirements
Entitlement
