Chapter 14 Gov't Spending, Taxation, And The National Debt

Front 1

equal tax treatment doctrine

Back 1

Taxpayers in the same economic curcumstances should be treated equally.

Front 2

horizontal equity

Back 2

People in identical economic circumstances pay an equal amount of taxes.

Front 3

verical equity

Back 3

Taxpayers in different economic circumstances are treated unequally based on either the ability to pay or the benefits recieved.

Front 4

relative tax treatment doctrine

Back 4

Taxpayers in different economic circumstances should be treated unequally.

Front 5

ability-to-pay principle of taxation

Back 5

Taxes should be distibuted among taxpayers based on the ability to pay taxes.

Front 6

benefits-recieved principle of taxation

Back 6

Taxes should be distributed amoung taxpayers based on the individual benefits recieved from government goods and services.

Front 7

excess tax burden

Back 7

A measure of tax inefficiency: that is, it measures the nonneutral or the distortionary effets of the tax on relative prices and resouce allocation.

Front 8

forward tax shifting

Back 8

Situation in which any part of a tax is paid for by consumers in the form of higher prices.

Front 9

backward tax shifting

Back 9

Situation in which any part of the tax is paid for by the owners of resources in the form of lower resource prives.

Front 10

tax incidence

Back 10

The burden or the final resting place of the tax.

Front 11

price esasticity of demand

Back 11

The responsiveness of the quantity demanded of a product to changes in the product's price.

Front 12

perfect price elasticity of demand

Back 12

An increase in price results in a reduction in quantity demanded to zero. This situation is usually shown as a horizontal demand curce at the current price.

Front 13

perfect price inelasticity of demand

Back 13

An increase in price results in no change in the quantity demanded. This situation is usually shown as a vertical demand curve at the current quantity demanded.