This is the name give to money received by the federal government.
What is revenue?
100
This is the difference between gross income and taxable income.
What is gross income is how much you earn, while taxable income is your gross income minus all the deductions and is what you pay taxes on?
100
This is the name given to who bears the burden of a tax.
What is the tax incidence?
100
This is what is meant by an "entitlement."
What is that the government, while not legally bound, nevertheless is obligated as a political matter to making a payment?
100
This is the name given to the government's use of taxing and spending to affect the economy.
What is fiscal policy?
200
These are the two components of the FICA tax.
What are Social Security and Medicare?
200
True or false: the government may tax the recipient of a gift if the amount of the gift exceeds $14,000 in any one year.
What is false (the DONOR is taxed, assuming he/she hasn't used the lifetime maximum exemption of $5.25 mm)?
200
The largest part of discretionary spending is spend on this.
What is defense?
200
This type of tax represents the greatest percentage of the federal government's tax revenue.
What is the personal income tax (at about 47%)?
200
Entitlements take up approximately this amount of the federal budget.
What is 2/3?
300
This is a tax system where the percentage of income paid in taxes increases as income increases.
What is a progressive tax system?
300
This is a way of trying to reduce entitlement spending by paying wealthy people less of a given benefit.
What is means testing?
300
This is the name of the form that your employer will give you at the end of a year that shows how much you earned.
What is a W-2?
300
This is one reason why privatizing Social Security is difficult politically.
What is b/c some people will make bad investment decisions and the gov't then either will have to ignore their problems or provide a safety net?
300
These are 4 of the largest "entitlements".
What are Social Security, Medicare, Medicaid, and interest on the debt?
400
This is a tax system that charges the same dollar amount to everyone regardless of income.
What is a regressive tax system?
400
This is the idea behind the "Laffer curve".
What is that tax revenues increase as you increase tax rates but only to a point, and that after you raise the tax rates beyond that point revenues start to decrease?
400
This is why people can deduct the interest they pay to a bank in connection with a loan to buy a home.
What is b/c our gov't wants people to buy homes?
400
Of the producer and the consumer, this is the party who bears most of the tax incidence when demand is elastic.
What is the producer?
400
Of the producer and the consumer, this is the party who bears most of the tax incidence when demand is inelastic.
What is the consumer?
500
This is the main problem with a "proportional" or "flat" tax.
What is you would upset all the businesses and charities that depend on tax deductions (like the homebuilding business, churches, etc.)?
500
These are two deductions that everyone gets, regardless of income, age, or anything else.
What are the "standard" deduction of $6,200 for single filers and a "personal exemption" of $3,900?
500
These are the 4 things that make a "good" tax system.
What are (1) simplicity, (2) efficiency, (3) certainty, and (4) fairness?
500
These are two ways to create a "fair" tax system.
What are (1) benefits received, and (2) ability to pay?
500
This attempts to tie cost-of-living increases in entitlement spending to changed habits of consumption.