The Economics of Taxation
Federal, State, and Local Revenue Systems
Current tax issues and reforms
The Economics of Government Spending
Federal, State, & Local Government Expenditures
100
The relatively high tax designed to raise revenue and reduce consumption of a socially undesirable product.
What is a sin tax?
100
The branch of the Treasury Department in charge of collecting taxes.
What is the Internal Revenue Service?
100
Earlier and larger depreciation charges that allowed firms to reduce federal income tax payments.
What is accelerated depreciation?
100
A line-item budget expenditure that circumvents normal budget procedures and benefits a small number of people or businesses.
What is pork?
100
Annual plan outlining proposed revenues and expenditures fro the coming year.
What is the federal budget?
200
The complex tax on people's earnings.
What is individual income tax?
200
The federal tax used to pay for Social Security and Medicare.
What is FICA?
200
Reduction in business taxes tied to investment in new plants and equipment.
What is investment tax credit?
200
Part of the economy made up of federal, state, and local governments.
What is public sector?
200
A 12-month financial planning period that may or may not coincide with the calendar year
What is the fiscal year?
300
The simple tax levied on most consumer purchases.
What is the sales tax?
300
The tax on the manufacture or sale of selected items such as gasoline or tires.
What is excise tax?
300
Personal income tax rate that applies whenever the amount of taxes paid falls below a designated level.
What is alternative minimum tax?
300
Part of the economy made up of private individuals and privately owned businesses.
What is private sector?
300
Constitutional provision requiring that annual spending not exceed revenue.
What is balanced budget amendment?
400
The tax that imposes a higher percentage rate of taxation on persons with high incomes than on those with low incomes.
What is a progressive tax?
400
The funds collected by one level of government that are distributed to another level of government for expenditures.
What is intergovernmental revenue?
400
Profits from the sale of an asset held for 12 months or longer.
What is capital gains?
400
Payment for which the government receives neither goods nor services in return.
What is transfer payment?
400
Largest category of state spending.
What is intergovernmental expenditures?
500
The tax that imposes a higher percentage rate of taxation on persons with low incomes than on those with high incomes.
What is a regressive tax?
500
A tax on tangible or intangible possessions.
What is property tax?
500
Tax placed on the value that manufactures add at each stage of production.
What is value-added tax (VAT)?
500
Way in which income is allocated among families, individuals, or other designated groups in the economy.
What is distribution of income?
500
An act of Congress that allows federal agencies to spend money for specific purposes.
What is an appropriation bill?
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