Entrep. Chapter 13

Front 1

A levy assessed on the retail sale of taxable items

Back 1

Sales Tax

Front 2

The exceptionally large number of Americans born in the late 1940's, 1950's, and early 1960's

Back 2

Baby Boom Generation

Front 3

The federal pension and disability insurance program funded through payroll tax in workers and their employers

Back 3

Social Security

Front 4

A federally funded health insurance program for the elderly

Back 4

Medicare

Front 5

A federal program designed to provide health insurnace coverage, to poor people, the disabled, and elderly Americans who are impoverished

Back 5

Medicaid

Front 6

A federal agency created to nurture cultural expression and promote appreciation for the arts.

Back 6

National Endowmment for the Arts (NEA)

Front 7

Government that takes responsibility for the welfare of its citizens through programs in public health, public houseing, old-age pensions, unemplyment compensation and the like

Back 7

Welfare State

Front 8

A financial incentive given by government to an individual or a business interest to accomplish a public objective

Back 8

Subsidy

Front 9

The government taking items of value, especially money, from some groups of Americans and then giving items of value, either in cash or services, to other groups of Americans

Back 9

Income Redistribution

Front 10

A system of institutionalized racial discrimination

Back 10

Apartheid

Front 11

A severe and prolonged economic slump characterized by decreased business activity and high unemployment

Back 11

Depression

Front 12

An economic slowdown characterized by declining economic output and rising unemployment.

Back 12

Recession

Front 13

A decline in the purchasing power of a currency

Back 13

Inflation

Front 14

An economic philosophy holding that government intervention impedes the free-market forces that drive healthy economy

Back 14

Laissez Faire

Front 15

Budget year

Back 15

Fiscal Year (FY)

Front 16

A tax deduction or exclusion that allows individuals to pay less tax then they would otherwise

Back 16

Tax Preference

Front 17

The exclusion of some types of income from taxation

Back 17

Tax Exemption

Front 18

An expediture that can be subtracted from a taxpayer's gross income before figuring the tax owed

Back 18

Tax Deduction

Front 19

An expenditure that reduces an individual's tax liability by the amount of the credit

Back 19

Tax Credit

Front 20

Levies assessed on the manufacture, transportation, sale, or consumption of a particular item or set of related items

Back 20

Excise Taxes

Front 21

The total value of goods and services produced by a nation's economy in a year, excluding transactions with foreign countries.

Back 21

Gross Domestic Product (GDP)

Front 22

The point at which the actual cost of a tax falls

Back 22

Tax Incidence

Front 23

A levy that taxes people earing higher incomes at a higher rate than it does individuals making less money and is based on the ablity to pay theory of taxation

Back 23

Progressive Tax

Front 24

A levy that taxes all persons at the same percentage rate, regardless of income

Back 24

Proportional Tax

Front 25

A levy whose burden falls more heavily on lower income groups than on wealthy taxpayers

Back 25

Regressive Tax

Front 26

The approach to government finance that holds that taxes should be based on an individual's ablity to pay

Back 26

Ability to Pay Theory of Taxation

Front 27

An income tax that assess the same percentage tax rate on all income levels above a personal exemption while allowing few if any deductions

Back 27

Flat tax

Front 28

The amount of money by which annual budget expenditures exceed annual budget receipts

Back 28

Budget Deficit

Front 29

The amount of money by which annual budget recipts exceed annual budget expenditures

Back 29

Budget Surplus

Front 30

Budget receipts equal budget expenditures

Back 30

Balanced Budget

Front 31

The accumulated indebtedness of the federal governement

Back 31

National Debt

Front 32

A measure of inflation that is based on the changing cost of goods and services

Back 32

Consumer Price Index (CPI)

Front 33

A mechanism designed to regulary increase the size of a payment to compensate for the effects of inflation

Back 33

Cost-of-Living Adjustment (COLA)

Front 34

A government program that provides benefits to recipeients based on their financial need

Back 34

Means-Tested Program

Front 35

A process that involves the government contracting with private business to implement government programs

Back 35

Privatization

Front 36

Government programs that provide benefits to individuals based on their economic status

Back 36

Welfare Programs

Front 37

A federal program designed to give cash assistance to low income working families by refunding some or all of the taxes they pay and if their wages are low, giving them an additional refund

Back 37

Earned Income Tax Credit (EITC)

Front 38

A federal program that provides vouchers to low income families and individuals that can be used to purchase food

Back 38

Food Stamp Program

Front 39

A federal program that provides money to low income people who are elderly, blind, or disabled who do not qualify for Social Security benefits

Back 39

Supplemental Security System (SSI)

Front 40

A federal welfare program that provides cash to the parents or guardians of children living in low income families

Back 40

Aid to Families with Dependent Children (AFDC)

Front 41

A federal program that provides temporary financial assistance and work opportunities to needy families

Back 41

Temporary Assistance for Needy Families (TANF)

Front 42

government program providing benefits to all persons qualified to receive them under law

Back 42

Entitlement Program

Front 43

The use of governemnt and taxation for the purpose of achieving economic goals

Back 43

Fiscal Policy

Front 44

Expenditures that are mandated by law, including entitlements and contactual committments made in previous years

Back 44

Mandatory Spending

Front 45

Budgetary expenditures that not mandated by law or contract, including annual funding for education, the Coast Guard, space exploration, highway construction, defense, foreign aid, and the Federal Bureau of Investigation (FBI)

Back 45

Discretionary Spending

Front 46

The procedure through which Congress legislatively allocates money for a particular purpose

Back 46

Appropriations Process

Front 47

The procedure through which Congress legislatively establishes a program, defines its general purpose, devises procedures for its operation, specifies an agency to implememt the program, and indicates an approximate level of funding for the program but does not actually provide money

Back 47

Authorization Process

Front 48

A theoretical effort to explain the budget process on the basis of small (incremental) changes in budget categories from one budget to the next

Back 48

Incremental Model of Budgeting

Front 49

Money paid for the use of money

Back 49

Interest

Front 50

The control of the money supply for the purpose fo achieving economic goals

Back 50

Monetary Policy

Front 51

An independent regulatory commission that makes monetary policy

Back 51

Federal Reserve Board (FED)

Front 52

A commiittee of the Federal Reserve that reviews the economy and adjusts monetary policy to achieve the goals of price stability and full employment

Back 52

Federal Open Market Committee (FOMC)

Front 53

A tax on investment income

Back 53

Capital Gains Tax

Front 54

An interest group representing the interests of older Americans; can purchase group health insurance, mutual funds, and prescripton drugs at a discount

Back 54

American Association of Retired Persons (AARP)

Front 55

Expenditures to fund local projects that are not critically important from a national prospective

Back 55

Pork Barrel Spending