vocab
Payroll Tax
a tax imposed by federal, state, or local governments on the wages, salaries, and tips paid to employees, typically used to fund social insurance programs like Social Security, Medicare, and unemployment
Property Tax
an ad valorem (based on value) tax levied by local government jurisdictions (municipalities, counties, school districts) on immovable property like land and buildings, as well as some movable, tangible property such as vehicles.
Supply-side Economics
a macroeconomic theory arguing that economic growth is most effectively created by lowering taxes, decreasing regulation, and encouraging free trade
macroeconomics
the branch of economics that studies the behavior, performance, and structure of an entire economy, rather than individual markets
a system where the tax rate increases as the taxable amount (income) increases
Marginal Tax Rate
the percentage of tax applied to your last dollar of taxable income, representing the highest rate you pay on your income
flat tax
an income tax system that applies a single, uniform tax rate to all taxpayers, regardless of their income level
value added ttax
a consumption tax assessed on the value added to goods and services at each stage of production and distribution, rather than just at the final point of sale
fiscal year
a consecutive 12-month period (or 52-53 week period) used by governments, businesses, and organizations for accounting, budgeting, and financial reporting
tax return
an annual document filed with a tax authority (like the IRS) that reports your income, deductions, and credits
tax loopholes
a legal provision, ambiguity, or omission in tax law that allows individuals or businesses to reduce their tax liability below what was originally intended by legislators
sin tax
an excise tax levied on specific goods or services deemed harmful, undesirable, or immoral to individuals and society
unemployment rate
the percentage of the total labor force that is jobless, available to work, and actively seeking employment
debtors
an individual, business, or entity that owes money, goods, or services to another party, known as the creditor
Definition of Infrastructure
the fundamental physical and organizational structures, systems, and facilities necessary for a society, economy, or organization to function
Definition of Business cycles
the natural, periodic fluctuation of economic activity
Definition of deflation
a general decline in the prices of goods and services across an economy
consumer price index
a key economic indicator calculated by the U.S. Bureau of Labor Statistics (BLS) that measures the average monthly change in prices paid by urban consumers for a representative "basket" of goods and services
creditors
an individual, organization, or entity that lends money or extends credit to another party