Economy (income redistribution)

national social security office

The ________ is the government agency that collects employee and employer contributions and distributes them among the branches.

social security system

The ________ consists of the insurance principle and the solidarity principle.

proportional tax system

every taxpayer pays the same tax rate

progressive tax system

higher taxable income = higher tax rate

→ global progressive

full income at the rate of the highest tax bracket

→ stepped progressive tax system

everyone has the same rate on the same part of their income

solidarity principle

possible payment to those who need it through a certain contribution

fiscal pressure

a measure that represents the difference between what the employer pays gross and what the employee receives net.

unemployment trap

the difference between the net salary and unemployment benefit is often so small for this category that it becomes financially more interesting to stay at home instead of working.

tax brackets

classification that shows how much tax must be paid at various income levels

tax avoidance and evasion

make every effort to pay as little tax as possible

tax fraud

provide incorrect information to the tax authorities or provide no information at all with the intention of not paying taxes

income distribution

the extent to which incomes in a country are distributed among the population

income redistribution

make changes to the primary distribution of income so that the high incomes become lower and the low incomes higher

income inequality

the realization that not everyone in a country earns the same amount

taxman

a government agency that collects taxes for the state

mattheus effect

observation that the higher income classes contribute more, but also make much more use of the social security system

normal distribution

statistical distribution in which the majority of the group scores medium, while the highest and lowest values ​​occur exceptionally

Gini-index

index that shows the degree of income inequality as an index between 0 and 100

gini coefficient

number representing the degree of income inequality as a number between 0 and 1