econ 9 vocab

Capital Gains

The increase in the value of an asset or investment over time, which is realized when the asset is sold for more than its original purchase price.

Customs duty

a tax imposed on goods when they are imported into a country.

Estate tax

A tax on the transfer of property after someone dies, calculated based on the value of the estate.

Excise tax

A tax on the production, sale, or consumption of specific goods, typically included in the price of the product.

FICA

Federal Insurance Contributions Act tax, which funds Social Security and Medicare programs through payroll deductions.

Gift tax

A federal tax on the transfer of money or property to another individual without receiving something of equal value in return, levied on gifts exceeding a certain amount.

Incidence of tax

The manner in which the burden of a tax is distributed between buyers and sellers. This can affect the prices consumers pay and the revenue received by producers.

Individual income tax

A tax imposed on the income earned by individuals, typically based on a progressive tax rate relative to their income level.

Payroll tax

A tax imposed on wages and salaries to fund Social Security and Medicare programs.

Property tax

A tax based on the value of real estate or personal property owned by individuals or businesses, usually levied by local governments.

Sales tax

A tax levied on the sale of goods and services, typically calculated as a percentage of the purchase price.

Sin tax

A tax imposed on goods deemed harmful to society, such as alcohol and tobacco, intended to discourage consumption and raise revenue.

Tax loophole

A provision in the tax code that allows individuals or businesses to reduce their tax liabilities legally, typically by taking advantage of deductions, exemptions, or credits.

Tax return

A form filed with the tax authorities to report income, expenses, and other relevant financial information for taxation purposes, used to calculate tax liabilities or refunds.

User fee

A charge levied on individuals or businesses for the use of specific services or facilities provided by the government.