Chapter 12 Flashcards
1
Q
Deficit
A
state spends more than it receives in taxes in one year
2
Q
Federal Debt
A
total amount the state owes
3
Q
How does a state spend more than it taxes?
A
by selling government bonds to individuals, companies, and to other governments.
4
Q
Net Public Debt
A
portion of debt that U.S. government owes to others
5
Q
How long is government’s plan for spending
A
10 years
6
Q
Static Scoring
A
assumes that individuals will not change their behavior if taxation or spending changes
7
Q
Dynamic Scoring
A
looks at the effects of past changes on behavior to forecast the effects of new legislation
8
Q
Proportional Tax
A
the tax rate is the same at all income levels
9
Q
Progressive Tax
A
the tax rate rises as income rises
10
Q
Regressive Tax
A
the tax rate rises as income falls
11
Q
What tax is on a cigarette?
A
Regressive Tax
