Economics C14: Taxes & Government Spending
Terms
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- What is Tax?
- A required payment to a local, state or national government.
- What is Revenue?
- The income received by a government from taxes and nontax sources
- What is a Tax Base?
- Income, property, good, or service that is subject to tax.
- What is Individual Income Tax?
- A tax on a person's earnings
- What is Sales Tax?
- A tax on the dollar value of a good/service being sold
- What is Property Tax?
- A tax on the value of a property.
- What is a Tax Assessor?
- An elected official who determines the value of a property.
- What is Corporate Income Tax?
- A tax on the value of a company's profits
- What is Proportional Tax?
- A tax for which the percentage of income paid in taxes remains the same for all income levels.
- What is a Progressive Tax?
- A tax for which the percentage of income paid in taxes increases as income increases.
- What is a Regressive Tax?
- A tax for which the percentage of income paid in taxes decreases as income increases.
- What is Incidence of a Tax?
- The final burden of a tax.
- What is Withholding?
- Taking tax payments out of an employee's pay before he/she receives it.
- What is a Tax Return?
- A form used to file income taxes.
- What is Taxable Income?
- Income on which tax must be paid; total income minus exemptions and deductions.
- What is a Personal Exemption?
- A set amount that you subtract from your gross income for yourself, your spouse, and any dependents.
- What are Deductions?
- Variable amounts that you can subtract or deduct from your gross income (G.I.)
- What is FICA?
- Taxes that fund Social Security and Medicare.
- What is Social Security?
- Old-Age, Survivors, and Disability Insurance (OASD)
- What is Medicare?
- A national health insurance program that helps pay for health care for people over age 65 or with certain disbilities.
- What is Estate Tax?
- A tax on the estate, or total value of the money and property, of a person who has died.
- What is a Gift Tax?
- A tax on money or property that one living person gives to another.(ex. a person can give up to $10,000 a yr. tax free to each of several different people).
- What are Tariffs?
- A tax on imported goods. Intended to encourage purchase of domestic goods.
- What are Tax Incentives?
- The use of taxation to encourage or discourage certain behavior.
- What is Mandatory Spending?
- Spending on certain programs that is mandated or required by existing law.
- What is Discretionary Spending?
- Spending about which government planners can make choices.
- What is Entitlement?
- Social welfare program that people are "entitled to" if they meet certain eligibility requirements.
- What is Medicaid?
- Entitlement program that benefits low-income families, some people with disabilities, and elderly people in nursing homes.
- What is an Operating Budget?
- Budget for day-to-day expenses.
- What is a Capital Budget?
- Budget for major capital or investment;expenditures.
- What is a Balanced Budget?
- Budget in which revenues are equal in spending.
- What is Tax Exempt?
- Not subject to taxes.
- What is Real Property?
- Physical property such as land or buildings.
- What is Personal Property?
- Possessions such as jewelry, furniture or boats.