Economics - Topic 8 - Taxes and Spending

tax

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

revenue

the income received by a government from taxes and other non-tax sources

progressive tax

a tax for which the percentage of income paid in taxes increases as income increases

proportional tax

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

regressive tax

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

tax base

the income, property, good, or service that is subject to a tax

individual income tax

a tax based on a person's earnings

corporate income tax

a tax based on a company's profits

property tax

a tax based on real estate and other property

sales tax

a tax based on goods or services that are sold

incidence of a tax

the final burden of a tax

withholding

taking tax payments out of an employee's pay before he or she receiving it

tax return

a form used to file income taxes

taxable income

the earnings on which tax must be paid; total income minus exemptions and deductions

personal exemption

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

tax credit

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

estate tax

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

gift tax

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

tax incentive

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

tax deduction

a variable amount that taxpayers may subtract from their gross income

tariffs

a tax on imported goods

mandatory spending

spending that Congress is required by existing law to do

discretionary spending

spending about which Congress is free to make choices

entitlement

social welfare program that people are "entitled to" benefit from if they meet certain eligibility requirements

FICA

Federal Insurance Contributions Act; tax levied on both employers and employees to pay for Social Security and medicare

Social Security

a system of federal financial support for retired workers and workers unable to continue working because of a disability

Medicare

A federal program of health insurance for persons 65 years of age and older

Medicaid

A health care payment program sponsored by federal & state governments

budget

an estimate of future revenues and expenses

operating budget

a budget for day-to-day spending needs

capital budget

a budget for spending on major investments

balanced budget

a budget in which revenue and spending are equal

tax exempt

not subject to taxes

real property

land and any permanent structures on the land to which a person has legal title

personal property

movable possessions or assets

tax assessor

an official who determines the value of property

Still learning (14)

You've started learning these terms. Keep it up!