Taxation and Economic Policies

Flashcards covering key concepts related to taxation, economic policies, and government financial mechanisms.

Progressive Taxes

Taxes where the rate increases as the taxable amount increases, leading higher earners to pay a larger percentage.

Regressive Taxes

Taxes where the rate decreases as the amount being taxed increases.

Proportional Taxes

Flat taxes where everyone pays the same percentage regardless of income level.

Monopoly

A market structure where a single company or entity has exclusive control over a market or industry.

Antitrust Policies

Rules designed to prevent big companies from being unfair and to maintain competition in the business sector.

NAFTA (North America Free Trade Agreement)

An agreement between the US, Canada, and Mexico that facilitates trade by eliminating extra taxes on goods traded between these countries.

Consumer Taxes

Additional charges on goods purchased by consumers, such as sales taxes, used to fund government services like schools and roads.

Discretionary Funding

Government money that can be allocated at the discretion of lawmakers for specific purposes, like education and infrastructure.

Earmarked Revenue

Funds that are set aside for a specific purpose and cannot be used for any other purpose.

Income Elastic Taxes

Taxes that increase at a rate greater than income when an individual's earnings increase, resulting in a higher percentage paid.

Nontax Revenue

Funds that the government collects that are not derived from taxes, such as fines and fees.

Tax Base

The total amount of income, property, or goods that can be taxed by the government to determine tax revenue.

Tax Shifting

The process where the taxpayer transfers the burden of tax payment to another party, such as increasing prices so customers effectively pay the tax.