chapter 12 Flashcards
1
Q
a deficit is
A
when the government spends more than it receives in tax revenue
2
Q
The federal debt is
A
the total amount the state owes.
3
Q
The net public debt
A
the portion of the debt that the US government owes to others, not itself
4
Q
static scoring
A
Assumes that individuals will not change their behavior
if taxation or spending changes.
5
Q
Dynamic scoring,
A
looks at the effects of past changes on behavior to forecast the effects of new legislation
6
Q
A proportional tax
A
is one in which the tax rate is the same at all income levels.
7
Q
A progressive tax
A
is one in which the tax rate rises as income rises.
8
Q
A regressive tax
A
is one in which the tax rate rises as income falls
