Name that Tax
Taxes that come out of our pay based on the amount of money we earn is called a(n):
Individual Income tax
What is a federal program that provides income to those over a certain age or based on another requirement such as disability?
Social Security
What is an estimate of future revenues and expenses?
a budget
What is the name of a tax where everyone pays the same percentage of income?
Proportional tax
What is a person’s income minus exemptions and deductions?
taxable income
What are actions by the Federal Reserve to influence the level of real GDP and the rate of inflation in the economy, often with the use of interest rates?
Monetary policy
What is a payment someone by law is required to pay to one of the levels of government?
A tax
A tax based on the value of someone’s house/houses, which usually goes to local governments is called a:
Property tax
What is federal spending allowed by law that Congress does not need to approve every year and is about 2/3 of government spending each year?
Mandatory spending
What is income received by government from taxes and other sources?
revenue
Our federal income tax is considered a:
A progressive tax with rates ranging from 10% to 37%
What are amounts you subtract from your gross income such as mortgage interest, charitable donations, and education expenses?
Tax deductions
The main responsibility of the Federal Open Market Committee is to make decision regarding:
Interest rates
For the federal income tax, we pay a marginal rate, which applies to:
Our next dollar of income
A tax based on people’s purchases of goods and services is called a(n):
Sales tax
Spending by the federal government that they have to approve every year
Discretionary spending
Which of the following is true regarding balanced budgets for states including Michigan and the U.S. national government?
The national government does not have to have a balanced budget each year, but most state governments, including Michigan, must have a balanced budget each year.
Taxes that the more money you earn, the higher percentage of income you pay are considered:
Progressive taxes
What are payments taken out of someone’s pay automatically before they receive it?
Withholding
What is the name of the committee in charge of running the Federal Reserve?
Board of Governors
What is the name of the central bank of the United States?
Federal Reserve System
A proportional tax with a rate of 1.45%, paid by both the employer and employee
Medicare
Social Security
Medicare
Interest on the national debt
Items included as part of mandatory spending?
What is the name of a budget to pay for infrastructure like buildings and bridges?
Capital budget
A proportional tax with a rate of 6%
sales tax in Michigan is:
What is a form used to file income taxes?
tax return
What are the coins and paper bills used as money?
currency
Of the three roles of money, which means how much each item is worth?
Measure of value
A tax on corporate profits
corporate income tax
Education
Police and fire protection
Utilities
top expenditures for local governments?
income tax
sales tax
intergovernmental revenue
sources of revenue for state governments?
For a millionaire, a tax where no taxes are paid on income greater than $184,500 per year, the tax would be considered a:
Regressive tax
What is an amount you subtract directly from your income tax owed?
Tax credit
When will the federal reserve decrease interest rates?
when it wants to increase real GDP and prices are stable
What is the name of programs using eligibility requirements such as age or income?
Entitlements
What is a general revenue tax on the sale or manufacture of a good?
Excise tax
Public safety
Transportation
Health and welfare
top expenditure for state governments
What is the name of a budget for day-to-day spending needs like salaries and supplies?
Operating budget
A proportional tax with a rate of 4.25%
The state income tax in Michigan is
What is using taxes to encourage or discourage certain behaviors?
Tax incentives
Portable
Durable
Divisible
characteristics of money
Which two payroll taxes does the employer pay match the tax paid by the employee, also called FICA?
Social Security and Medicare
National defense
Transportation
Education
Items included as part of discretionary spending
Property tax
User fees
Intergovernmental revenues
sources of revenue for local governments?
A proportional tax with a rate of 6.2%, paid by both the employer and employee, but only on the first $184,500 of income
Social Security tax
What are set amounts you subtract from your gross income for yourself, your spouse, and any dependents?
Personal exemptions
by clearing checks
supervising banking practices
acting as the lender of last resort
ways that the Federal Reserve assists banks?
Of the three roles of money, which means you can exchange it for goods and services?
Medium of exchange
No question
No answer
What is an institution for receiving, keeping, and lending money?
a bank
What is a requirement that revenues equal expenses?
balanced budget
What is a tax collected directly from the person or entity that pays it?
Direct tax
What is the income, property, good, or service subject to a tax?
tax base
When will the federal reserve increase interest rates?
when it wants to reduce or prevent inflation
Of the three roles of money, which means you can save it to use later?
Store of value