Tax Basics
This is why taxes exist
What is Government Funding
A tax rate that increases with the amount of money you have
What is a progressive tax?
Largest income for the federal government
What is the federal income tax?
A Fiscal Year runs between these dates
Governments use of money to influence the economy
What is Fiscal Policy?
When federal spending exceeds government revenue
What is a deficit?
This is the power given to congress to raise money
A tax rate that decreases with the amount of money you have
What is a regressive tax?
Taxes paid by employers and employees to fund things like social security and medicare
What are payroll taxes?
Money the federal government expects to receive in a fiscal year
What are receipts(Or revenues)?
The theory that states government spending will stimulate the economy
What is Keynesian Economics?
When federal revenue exceeds federal spending
What is a surplus?
This is the principle that says that one should only pay what they can afford to pay in taxes
What is the Ability-To-Pay Principle
A tax rate that stays the same no matter the income
What is a proportional tax?
Taxes on specific goods, whether manufactured, sold, or consumed
What are Excise taxes?
Money the federal government spends in a year
What are Outlays(or expenditures)?
The Theory that states lower taxes would stimulate the economy and personal growth
What are supply-side economics?
The total amount of money the government owes
What is the Public(National) Debt?
The principle that states that anyone who benefits from public services should pay taxes to enjoy them
What is the Benefits-Received Principle?
Income that remains after taxes
What is a disposable income?
Taxes levied on a property that is inherited
What are estate taxes?
Money that Congress is required to spend by law
What is Mandatory Spending?
A period of time defined by declining GDP and increasing unemployment
What is an economic recession?
The government borrows money by primarily selling these things
What are Securities(Bonds, Notes, or Bills)?
These are taxes levied on one person but passed on to another person
What are Indirect Taxes?
An amount subtracted from your required taxes for each dependent
Taxes paid on the income of a business
What are corporate income taxes?
Spending that congress must approve each year
What is Discretionary Spending?
A rise in prices over time
What is inflation?
Daily Double!
What is our current national debt? Round to the nearest Trillion