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55 Cards in this Set

  • Front
  • Back
A levy assessed on the retail sale of taxable items
Sales Tax
The exceptionally large number of Americans born in the late 1940's, 1950's, and early 1960's
Baby Boom Generation
The federal pension and disability insurance program funded through payroll tax in workers and their employers
Social Security
A federally funded health insurance program for the elderly
A federal program designed to provide health insurnace coverage, to poor people, the disabled, and elderly Americans who are impoverished
A federal agency created to nurture cultural expression and promote appreciation for the arts.
National Endowmment for the Arts (NEA)
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
Welfare State
A financial incentive given by government to an individual or a business interest to accomplish a public objective
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
Income Redistribution
A system of institutionalized racial discrimination
A severe and prolonged economic slump characterized by decreased business activity and high unemployment
An economic slowdown characterized by declining economic output and rising unemployment.
A decline in the purchasing power of a currency
An economic philosophy holding that government intervention impedes the free-market forces that drive healthy economy
Laissez Faire
Budget year
Fiscal Year (FY)
A tax deduction or exclusion that allows individuals to pay less tax then they would otherwise
Tax Preference
The exclusion of some types of income from taxation
Tax Exemption
An expediture that can be subtracted from a taxpayer's gross income before figuring the tax owed
Tax Deduction
An expenditure that reduces an individual's tax liability by the amount of the credit
Tax Credit
Levies assessed on the manufacture, transportation, sale, or consumption of a particular item or set of related items
Excise Taxes
The total value of goods and services produced by a nation's economy in a year, excluding transactions with foreign countries.
Gross Domestic Product (GDP)
The point at which the actual cost of a tax falls
Tax Incidence
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
Progressive Tax
A levy that taxes all persons at the same percentage rate, regardless of income
Proportional Tax
A levy whose burden falls more heavily on lower income groups than on wealthy taxpayers
Regressive Tax
The approach to government finance that holds that taxes should be based on an individual's ablity to pay
Ability to Pay Theory of Taxation
An income tax that assess the same percentage tax rate on all income levels above a personal exemption while allowing few if any deductions
Flat tax
The amount of money by which annual budget expenditures exceed annual budget receipts
Budget Deficit
The amount of money by which annual budget recipts exceed annual budget expenditures
Budget Surplus
Budget receipts equal budget expenditures
Balanced Budget
The accumulated indebtedness of the federal governement
National Debt
A measure of inflation that is based on the changing cost of goods and services
Consumer Price Index (CPI)
A mechanism designed to regulary increase the size of a payment to compensate for the effects of inflation
Cost-of-Living Adjustment (COLA)
A government program that provides benefits to recipeients based on their financial need
Means-Tested Program
A process that involves the government contracting with private business to implement government programs
Government programs that provide benefits to individuals based on their economic status
Welfare Programs
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
Earned Income Tax Credit (EITC)
A federal program that provides vouchers to low income families and individuals that can be used to purchase food
Food Stamp Program
A federal program that provides money to low income people who are elderly, blind, or disabled who do not qualify for Social Security benefits
Supplemental Security System (SSI)
A federal welfare program that provides cash to the parents or guardians of children living in low income families
Aid to Families with Dependent Children (AFDC)
A federal program that provides temporary financial assistance and work opportunities to needy families
Temporary Assistance for Needy Families (TANF)
government program providing benefits to all persons qualified to receive them under law
Entitlement Program
The use of governemnt and taxation for the purpose of achieving economic goals
Fiscal Policy
Expenditures that are mandated by law, including entitlements and contactual committments made in previous years
Mandatory Spending
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)
Discretionary Spending
The procedure through which Congress legislatively allocates money for a particular purpose
Appropriations Process
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
Authorization Process
A theoretical effort to explain the budget process on the basis of small (incremental) changes in budget categories from one budget to the next
Incremental Model of Budgeting
Money paid for the use of money
The control of the money supply for the purpose fo achieving economic goals
Monetary Policy
An independent regulatory commission that makes monetary policy
Federal Reserve Board (FED)
A commiittee of the Federal Reserve that reviews the economy and adjusts monetary policy to achieve the goals of price stability and full employment
Federal Open Market Committee (FOMC)
A tax on investment income
Capital Gains Tax
An interest group representing the interests of older Americans; can purchase group health insurance, mutual funds, and prescripton drugs at a discount
American Association of Retired Persons (AARP)
Expenditures to fund local projects that are not critically important from a national prospective
Pork Barrel Spending