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Economics C14: Taxes & Government Spending


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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.

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