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Economics > Taxes and Government Spending > Flashcards

Flashcards in Taxes and Government Spending Deck (34)
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1
Q

Tax

A

A required payment to a local, state, or national government

2
Q

Revenue

A

Income received by a government from taxes and other nontax sources

3
Q

Progressive Tax

A

Tax for which the percentage of income paid in taxes increases as income increases

4
Q

Proportional Tax

A

Tax for which the percentage of income paid in taxes remains the same at all income levels

5
Q

Regressive Tax

A

Tax for which the percentage of income paid in taxes decreases as income increases

6
Q

Individual Income Tax

A

Tax based on a person’s earnings

7
Q

Corporate Income Tax

A

Tax based on a company’s earning

8
Q

Property Tax

A

Tax based on real estate and other property

9
Q

Sales Tax

A

Tax based on goods or services that are sold

10
Q

Incidence of a Tax

A

The final burden of a tax

11
Q

Withholding

A

Taking tax payments out of an employee’s pay before he or she receives it

12
Q

Tax Return

A

Form used to file income tax

13
Q

Taxable Income

A

Earnings in which tax must be paid; total income minus exemptions deductions

14
Q

Personal Exemptions

A

A set amount that taxpayers may subtract from their gross income for themselves, their spouse, and any dependents

15
Q

Tax Deduction

A

A variable amount that taxpayers may subtract from their gross income

16
Q

Tax Credit

A

A variable amount that taxpayers may subtract from the total amount of their income tax

17
Q

Estate Tax

A

A tax on the total value of the money and property of a person who has died

18
Q

Gift Tax

A

A tax on the money or property that one living person gives to another

19
Q

Tariff

A

A tax on imported goods

20
Q

Tax Incentive

A

The use of taxation to discourage or encourage certain types of behavior

21
Q

Mandatory Spending

A

Spending that Congress is required by existing law to do

22
Q

Discretionary Spending

A

Spending about which Congress is free to make choices

23
Q

Entitlement

A

Social welfare program that people are “entitled to” benefit from if they meet certain eligibility requirements’

24
Q

Budget

A

An estimate of future revenue and expenses

25
Q

Operating Budget

A

Budget for day-to-day spending needs

26
Q

Capital Budget

A

Budget for spending on major investments

27
Q

Balanced Budget

A

Budget in which revenue and spending are equal

28
Q

Tax Exempt

A

Not subject to taxes

29
Q

Tax Assessor

A

Official who determines the value of property

30
Q

Deductions

A

Variable amounts that you can subtract or deduct from your gross income

31
Q

FICA (Federal Insurance Contributions Act)

A

Taxes that fund Social Security and Medicare

32
Q

Social Security

A

Old-age, survivors and disability insurance established in 1935 to ease the hardships of the Great Depression

33
Q

Medicare

A

National health insurance program that helps pay for health care for people over age 65 or with certain disabilities

34
Q

Medicaid

A

Entitlement program that benefits low-income families, some people with disabilities, and elderly people in nursing homes