Fiscal Policy Flashcards

Vocabulary flashcards based on lecture notes about fiscal policy, taxes, and government spending.

Taxable Income

The amount of income subject to taxation after deductions and exemptions.

Tax Rate

The percentage at which income is taxed.

Federal Tax Brackets

Income ranges to which specific tax rates apply.

Payroll Taxes

Taxes on wages and salaries to fund Social Security and Medicare.

Consumption Taxes

Taxes on goods and services.

Estate Tax

Tax on the transfer of property upon death.

Individual Income Taxes

Taxes on an individual's earnings.

Corporate Taxes

Taxes on company profits.

Property Taxes

Taxes on real estate and other property.

Progressive Tax

A tax where higher-income earners pay a larger percentage of their income in taxes.

Regressive Tax

A tax where lower-income earners pay a larger percentage of their income in taxes.

Government Spending Multiplier

The ratio of the change in national income to the change in government spending.

Fiscal Policy

Government use of spending and taxation to influence the economy.