Chapter 14

Question 1

Tax

Answer 1

Required payment to local state or national government

Question 2

Revenue

Answer 2

Income received by a government from taxes and nontaxes sources

Question 3

Tax base

Answer 3

Income, property, good, or service subject to a tax

Question 4

Individual income tax

Answer 4

Tax on a persons earning

Question 5

Sales tax

Answer 5

Dollar value of a good or service being sold

Question 6

Property tax

Answer 6

Value of a property

Question 7

Corporate income tax

Answer 7

Value of a company’s profit

Question 8

Proportional tax

Answer 8

Percentage of income paid in taxes remains the same for all income levels

Question 9

Progressive tax

Answer 9

Percentage of income paid in taxes increases as income increases

Question 10

Regressive tax

Answer 10

Percentage of income paid in taxes decreases as income increases

Question 11

Incidence of a tax

Answer 11

Final burden of a tax

Question 12

Withholding

Answer 12

Taking tax payments out of an employees pay before he or she receives it

Question 13

Tax return

Answer 13

Form used to file income taxes

Question 14

Taxable income

Answer 14

Tax must be paid

Question 15

Personal exemption

Answer 15

Set amount that you subtract from gross income for yourself, spouse

Question 16

Deduction

Answer 16

Variable amounts that you can subtract or deduct from gross income

Question 17

FICA

Answer 17

Social security and Medicare

Question 18

Social security

Answer 18

Old age, survivors, and disability insurance

Question 19

Medicare

Answer 19

National health insurance program that helps pay for health care for people over age 65 or certain disabilities

Question 20

Estate tax

Answer 20

Tax on estate

Question 21

Gift tax

Answer 21

Money or property given from another

Question 22

Tariff

Answer 22

Imported goods

Question 23

Tax incentive

Answer 23

Taxation to encourage or discourage certain behavior

Question 24

Mandatory spending

Answer 24

Spending on mandated or required by existing law

Question 25

Discretionary spending

Answer 25

About which government planners can make choices

Question 26

Entitlement

Answer 26

Social welfare program that people are “entitled to” if they meet certain eligibility requirements

Question 27

Medicaid

Answer 27

Benefits low income families, disabilities, and elderly in nursing home

Question 28

Operating budget

Answer 28

Day to day expenses

Question 29

Capital budget

Answer 29

Major capital or investment, expenditures

Question 30

Balanced budget

Answer 30

Revenues are equal to spending

Question 31

Tax exempt

Answer 31

No subject to taxes

Question 32

Real property

Answer 32

Physical property such as land and building

Question 33

Personal property

Answer 33

Possessions such as jewelry, furniture, boats

Question 34

Tax assessor

Answer 34

Official who determines the value of a property