Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
|
budget deficit
|
an excess of government spending over government receipts
|
|
|
budget surplus
|
an excess of government receipts over government spending
|
|
|
average tax rate
|
total taxes paid divided by total income
|
|
|
marginal tax rate
|
the extra taxes paid on an additional dollar of income
|
|
|
lump-sum tax
|
a tax that is the same amount for every person
|
|
|
benefits principle
|
the idea that people should pay taxes based on the benefits they receive from government services
|
|
|
ability to pay principle
|
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
|
|
|
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
|
|
|
proportional tax
|
a tax for which high-income and low-income taxpayers pay the same fraction of income
|
|
|
Regressive Tax
|
a tax for which high-income taxpayers pay a smaller fraction of their income than do low-income taxpayers
|
|
|
Progressive Tax
|
a tax for which high-income taxpayers pay a larger fraction of their income than do low-income taxpayers
|
