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25 Cards in this Set
- Front
- Back
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Average Tax Rate
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percentage of ratio at which a person or business is taxed
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Balanced Budget
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income is equal to its expenditure or revenues are equal to spending
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Excise Tax
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A tax paid on a good at the point of sale
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Income Tax
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can be personal 45% or cooperate 15%,
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Laffer Curve
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used to illustrate the idea that increases in the rate of taxation do not necessarily increase tax revenue. (For instance, whereas a 0% income tax rate will generate no revenue, neither will a 100% rate, as citizens will have no incentive to make money).
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Marginal Tax Rate
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is the rate on the last dollar of income earned
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Medicare
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regressive tax, hospital, doctor, and prescription medication assistance for those 65 and older or disabled
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Progressive
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The tax rate/burden increases as disposable income increases
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Regressive
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The tax rate/burden decreases as the disposable income increases
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Revenue
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income
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Tariffs
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A tax paid on a good shipped into the country
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Payroll taxes
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35%
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State Expenditures
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Public safety, Public welfare, and Transportation
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State Revenue
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Sales tax 28%, Federal Grants in Aid 27%, Personal Income Taxes 22%, Other 19%, Corporate Income Taxes 4%
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Percentage of US companies paying no income taxes
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57%
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bottom 50% of tax payers pay ___ amount of federal income revenues 2006
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3%
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top 1% of U.S. taxpayers paid about ________ of the federal income tax revenues. 2006
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40%
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The Sixteenth Amendment
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Personal income tax
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The Fifth Amendment
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Eminent domain
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The Constitution
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Grants Congress the right to borrow
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top 10% of earners in the U.S. pay approximately ______ of the federal income tax revenues 2006
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71%
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Social Security
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Regressive Tax, Implemented by Roosevelt
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Automatic stabilizers
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work to mitigate the fluctuations in real GDP without any new policy action required
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Local Government Revenue
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comes from Property tax and Sales Tax and is spent on education, public safety, and social programs
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Personal Income
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mitigate the fluctuations in rising real GDP due to their progressive nature
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