Chapter 13 Key Terms Flashcards
Monies derived by a government from its own taxable resources.
Own-Source Revenue
The movement of money or other resources from one level of government to another.
Intergovernmental Transfers
A transfer of federal dollars to states and localities to counteract a downturn in the economic cycle.
Countercyclical Aid
The taxable resources of a government jurisdiction.
Tax Capacity
The extent to which a jurisdiction exploits its taxable resources.
Tax Effort
A tax in which the rate fails as the base or taxable income rises, advantaging those with higher income.
Regressive Tax
A tax in which the rate rises as the base or taxable income rises, advantaging those with lower income.
Progressive Tax
A tax in which people pay an identical rate regardless of income or economic transaction.
Proportional (Flat) Tax
The principle that taxes should be levied on those who benefit directly from a government service.
Benefit Principle
A system in which tax brackets are automatically adjusted to account for inflation.
Indexing
A limit on taxes applied to certain categories of people, such as the poor or elderly.
Circuit Breaker
Situation in which people demand more government services but do not want to pay for them through higher taxes.
Tax-Service Paradox
Political choices that have economic outcomes.
Political Economy
Restrictions on state and/or local government taxing and spending.
Taxation and Expenditure Limitations (TELs)
Financial pressure on a government from factors such as revenue shortfalls and taxing and spending limitations.
Fiscal Stress
