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15 Cards in this Set
- Front
- Back
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Ability to pay principle |
theory that those with higher incomes should pay more in taxes than those with lower incomes |
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Benefits received principles |
concept that taxes should be based on services received |
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Corporate income tax |
tax on profits earned by corporations |
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Excise Tax |
Tax on a specific good or service |
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Personal income tax |
An income tax on individuals |
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Progressive tax |
Tax that takes a larger percentage from a high income taxpayer than from a low-income taxpayer. |
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Proportional tax |
requires each person to pay the same percentage of his or her income in taxes |
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Regressive tax |
tax that affects low income groups more than high income groups |
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Sales tax |
Tax on retail purchases |
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Value-added tax (VAT) |
Tax applied at each stage of production or distribution |
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A study of the role of government in the US economy shows that... |
government spending at all levels has been increasing |
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Whenever government performs a service or spends money, it... |
is deciding how resources will be allocated |
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A governments financial plan is called... |
a budget |
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The governments budget will have a deficit whenever... |
spending is greater than revenue |
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State and local governments spend the most money on... |
Education |
