Key Terms
A required payment to a local, state, or national government.
What is Tax?
The roads you drive on are an example of this usage of tax.
What is to fund public goods and services?
The rate is the same for everyone paying the tax.
What is Flat Tax?
The idea that those benefiting from public service should pay for it
What is the benefit principle?
Money received or collected by a government for public use.
What is Revenue?
You walk into the store and realize that alcohol has a greater tax than that of the sparkling grape juice next to it. Why does the government do this?
What is to influence behavior?
Percentage of the value of a good or service paid in addition to the original price
What is sales tax?
Those who can afford to pay more should contribute more in taxes.
What is the ability-to-pay principle?
Taxing higher-income people at a higher larger percentage than low-income individuals
Taxes taken from the wealthy can be spent to help financially unstable people or the homeless.
What is to redistribute income?
The tax varies for the people paying it.
What is Graduated Tax?
The sales tax in Pennsylvania.
What is 6%?
A tax taking the same percentage out of everyone’s income
What is Proportional tax?
Taxes imposed on foreign-made goods
What are customs duties and tariffs?
The Amendment that allows income tax.
What is the 16th amendment?
Taxing lower-income individuals at a greater percentage than those with a higher income
What is Regressive tax?
Taxes on the manufacturing or sale of certain goods. Usually fuel, tobacco, firearms, alcohol, etc.
What is Excise Tax?
The year in which the constitution first allowed Congress to levy taxes.