Government Exam Ch 3

Public Policy

Choice by government to either take action or remain inactive

Tax Shifting

Passing taxes on to other citizens

Medicaid

A federal government program to provide funds to pay for medical care for people of any age with very low incomes.

Progressive Taxes

Taxes that take a higher percentage of income from high-income persons.

Benefit-based Taxes

Taxes for which there is a relationship between the amount paid in taxes and services received.

Franchise Fee

Major business tax in Texas that is assessed on income earned by corporations in the state.

Permanent Taxes

A State of Texas fund to support the University of Texas and Texas A&M systems as required by the Texas Constitution.

Medicare

A Federal program providing funds to pay for medical care for eligible people 65 and older or with certain disabilities.

Regressive Taxes

Taxes that take a higher percentage of income from low-income persons.

Consumer Taxes

Taxes that citizens pay when they buy goods and services - the most prominent example being sales tax.

Tort

A civil wrong, recognized by law as grounds for a lawsuit, which can be redressed by awarding damages.

Promotional Taxes

Taxes that take the same percentage of income from all citizens.

Excise Tax

Usually embedded in the price of a specific good or service and collected at the time of transaction. For example, gasoline includes the tax as part of the price paid per gallon at the pump.

Dedicated Revenue

Money dedicated to a specific expenditure by constitutional provision or law.