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President Bill Clinton
________ signed a law that raised marginal tax rates on rich Americans to around 40 %.
deadweight losses
While taxes typically cause ________, the tax system should be efficient and equitable.
Gross Domestic Product
The ________ (GDP) measures the total income in the economy.
Taxpayers
________ have the ability to put some of their income into special savings accounts.
Profit
________ is the amount a corporation receives for goods or services it sells.
Proportional
________: a tax for which high- income taxpayers pay the same fraction of income.
Taxes
________ on gas are sometimes justified by the benefits principle.
Social Security
Social insurance taxes pay for ________ and Medicare.
Receipts
________ showed over $ 2.5 trillion in paid taxes in 2017.
Tax systems
________ require equity and efficiency.
local governments
State and ________ collect about 1 /3 of paid taxes.
Excise taxes
________ are taxes on specific goods.
Benefits principle
________: the idea that people should pay taxes based on the benefits they receive from government services.
Vertical equity
________: the idea that taxpayers with a greater ability to pay taxes should pay larger amounts.
Horizontal equity
________: the idea that taxpayers with similar abilities to pay taxes should pay the same amount.
Note
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