Study Guide: U.S. Taxes, Fiscal Policy, Democracy, and Social Security

A collection of flashcards covering key terms and concepts related to U.S. taxes, fiscal policy, democracy, and social security.

Progressive taxes

Tax rate increases as income increases.

Regressive taxes

Tax rate decreases as income increases; examples include sales taxes and payroll taxes.

Proportional taxes

Flat tax where everyone pays the same percentage.

Income taxes

Main federal revenue source.

Social Security taxes

Payroll tax up to a wage cap; considered regressive.

VAT tax

Consumption tax used globally.

Wealth taxes

Taxes on net worth.

Carbon tax

Charges emitters per ton of CO2.

Budget deficit

Spending exceeds revenue.

National debt

Accumulated deficits.

Social Security Options

Options to fix include raising the payroll tax cap, increasing tax rates, raising retirement age, reducing benefits, adjusting COLA.

Flat tax

A radical tax reform idea where everyone pays the same percentage.

Buy, Borrow, Die Strategy

Strategy used by wealthy individuals to avoid taxes by borrowing against assets.

Constitutional republic

The U.S. is a constitutional republic with structures that limit direct democracy.

Musk's Madison Insight

Connection between Elon Musk's commentary on power and James Madison's warnings about factions.