Chapter 13: The Politics of Taxing and Spending

These flashcards cover key concepts from Chapter 13 of the course notes on taxing and spending, highlighting important statistics, definitions, and political implications.

What is the focus of Chapter 13 in the course this semester?

The budget, specifically the politics of taxing and spending.

What percentage of federal taxes did the top 1% of taxpayers pay in 2021?

Approximately 45 to 46% of all federal taxes.

What is a progressive tax rate?

A tax system where higher incomes are taxed at higher rates.

How much of the total federal revenue in 2021 came from individual income taxes?

Over $3.5 trillion.

What are the two main components of social insurance taxes mentioned in the chapter?

Social Security and Medicare.

What is the income tax rate for social security contributions?

6.2% of income.

What is the current status of the Social Security Trust Fund?

The fund is effectively empty because the government has borrowed from it.

What is the national debt as mentioned in this chapter?

Approximately $34 trillion.

What was a significant event that caused an increase in national debt starting in 2001?

The 9/11 attacks, which led to increased military spending.

Why do some politicians argue for higher corporate taxes?

To ensure corporations pay a fair share of taxes, although this burden often shifts to consumers.

What are tax expenditures?

Tax revenue that is lost due to exemptions, deductions, and credits.