chapter 14 econ

Question 1

what are taxes?

Answer 1

fee that you pay the government local state federal, set by government

Question 2

how is the gov able to tax?

Answer 2

through the constitution, 16th admendment

Question 3

progessive tax?

Answer 3

the more you make the higher % you pay; IRS

Question 4

revenue?

Answer 4

money gov brings in; some tax money but also some other sources; selling of the land

Question 5

proportional tax?

Answer 5

everybody pays the same % (property tax)

Question 6

regressive tax?

Answer 6

the kess you make the more you pay (Ronald Reagan trickle down econmoics theory, tax breaks to rich so they have more money to invest in businesses, in turn put more people to work.

Question 7

tax base?

Answer 7

who pays the tax, why you pay the tax

Question 8

corporate income tax?

Answer 8

paid quarterly (GM, Eli Lilly; for businesses)

Question 9

individual income tax?

Answer 9

what you file

Question 10

property tax?

Answer 10

property owners paid based on property value

Question 11

sales tax?

Answer 11

pay when you buy goods

Question 12

characteristics of a good tax

Answer 12

1. simple; easy to understand
2. efficent; easily collected
3. certain; has to be clear
4. equitable; has to be fair

Question 13

individual income tax?

Answer 13

if you dont file you wont get refund (pay-as-you-earn-tax)

Question 14

withholding

Answer 14

money they take out of your check

Question 15

tax return

Answer 15

forms you have to file by April 15

Question 16

taxable income

Answer 16

gross pay or total pay

Question 17

personal exemptions

Answer 17

lowers your tax withhold W4

Question 18

tax deductions

Answer 18

lowers tax bill

Question 19

tax credit

Answer 19

money you get off for doing something good (electroic car)

Question 20

corporate income tax?`

Answer 20

higher level than indivudual income taxes, they are progressive

Question 21

social secrity?

Answer 21

set up by fdr to help provide retirement 6.2% of check

Question 22

medicare?

Answer 22

pay for health service past age of 65

Question 23

excise tax?

Answer 23

hidden tax paid by producer passed onto consumer (gasoline)

Question 24

estate tax?

Answer 24

inheritance, tax you pay when someone passes away

Question 25

gift tax?

Answer 25

tax that you pay on money given to you (lottery)

Question 26

tax incentive?

Answer 26

gov gives you a tax break to do something good

Question 27

sin tax?

Answer 27

tax on tobacco

Question 28

mandatory spending?

Answer 28

spending that the gov must do; entitlement programs

Question 29

entitlement programs?

Answer 29

something you get for being an american citizen; social secrity medicare

Question 30

discretionary spending?

Answer 30

gov does not have to do can change; scientific research law enforcement

Question 31

state tax?

Answer 31

state passes a budget (general assembly and governer)

Question 32

operating?

Answer 32

short term sailers

Question 33

capital?

Answer 33

long term I69

Question 34

balanced budget?

Answer 34

cannot spend more money than what the state has

Question 35

Where are tax dollars spent?

Answer 35

1. education: colleges - elementary schools
2. public safety: police officers
3. repair and building roads

Question 36

state tax revenue

Answer 36

money coming into that state.

1. sales tax
2. individual income tax
3. corportate income tax

Question 37

real property

Answer 37

realistate tax

Question 38

personal property

Answer 38

automobile, boat