part two yolo

Question 1

any tax in which the burden falls more heavily on the rich than the poor

Answer 1

progressive tax

Question 2

any tax in which the burden falls more heavily on the poor than the rich, at least as a percentage of their incomes

Answer 2

regressive tax

Question 3

the basic public facilities and installations that help an economy function, including roads, bridges, airports, power and water systems, and other utilities

Answer 3

infrastructure

Question 4

the idea that a tax system should be fair

Answer 4

tax equity

Question 5

the idea that citizens should be taxed according to their income or wealth; one of two basic approaches to tax equity

Answer 5

ability-to-pay principle

Question 6

the idea that citizens who benefit from a particular government program should pay for it; one of two basic approaches to tax equity

Answer 6

benefits-received principle

Question 7

the allocation of the burden of a tax between consumers and producers; tax incidence is said to fall on the group that bears the burden of the tax, no matter from whom the tax is collected

Answer 7

tax incidence

Question 8

something that is taxed, such as personal income or a piece of property

Answer 8

tax base

Question 9

the percentage that is levied on the value of whatever is being taxed, such as income or property

Answer 9

tax rate

Question 10

the set of laws that govern federal, state, or local taxes

Answer 10

tax code

Question 11

a direct popular vote on a proposal to raise taxes

Answer 11

tax referendums

Question 12

a loss of productivity or economic well-being for which there is no corresponding gain

Answer 12

deadweight loss

Question 13

expenditures that can be raised or lowered as a legislature sees fit; spending that is not mandatory

Answer 13

discretionary spending

Question 14

a tax that takes the same share of income at all income levels; a flat tax is proportional

Answer 14

proportional tax

Question 15

a tax on the wages a company pays its employees; examples include the Social Security tax and the Medicare tax

Answer 15

payroll tax

Question 16

taxes levied on real property—land and buildings—and sometimes on personal property, such as cars and boats

Answer 16

property taxes

Question 17

a proportional income tax that applies the same tax rate to all taxpayers, regardless of income

Answer 17

flat tax

Question 18

a shortfall between government revenues and expenditures in any given year

Answer 18

federal deficit

Question 19

a 12-month accounting period

Answer 19

fiscal year

Question 20

a system in which employers deduct a certain amount of tax from workers’ paychecks

Answer 20

withholding

Question 21

an official document that lists a worker’s wages for the previous year and the amount of tax that was withheld; W-2 forms are filed with federal income tax returns

Answer 21

W-2 Form

Question 22

an official review of an income tax return to assess the return’s accuracy

Answer 22

audit

Question 23

the value of a piece of property for tax purposes, as determined by a public official known as an assessor

Answer 23

assessed value

Question 24

the rate at which the last dollar a person earns in a given year is taxed

Answer 24

marginal rate tax

Question 25

a federal payroll tax designed to fund Social Security benefits, including old-age pensions and income for people with disabilities

Answer 25

Social Security Tax

Question 26

a state payroll tax that funds programs to help workers who are injured on the job

Answer 26

state disability tax

Question 27

a tax on the purchase of goods and services

Answer 27

sales tax

Question 28

an excise tax placed on certain goods or services to discourage their consumption; examples include excise taxes on alcohol, cigarettes, and gambling

Answer 28

sin taxes

Question 29

a federal payroll tax designed to fund Medicare, the national health insurance program for the elderly and disabled

Answer 29

Medicare tax

Question 30

government expenditures that are fixed by law and can only be changed by new legislation; spending that is not discretionary

Answer 30

mandatory spending

Question 31

a state payroll tax used to assist workers who lose their jobs

Answer 31

unemployment tax

Question 32

a tax applied to the profits of a corporation

Answer 32

corporate income tax

Question 33

a tax on the manufacture or sale of a good

Answer 33

excise tax

Question 34

a federal tax on the assets left to heirs by someone who dies

Answer 34

estate tax

Question 35

a government program that provides benefits to individuals based on their age, income, or some other criteria

Answer 35

entitlements

Question 36

taxes levied on the sale of high-priced luxury goods, such as diamond jewelry and private jets

Answer 36

luxury taxes

Question 37

a state tax on the assets left to heirs by someone who dies; similar to the federal estate tax

Answer 37

inheritance tax

Question 38

the total amount owed by a nation’s government as a result of borrowing

Answer 38

national debt

Question 39

a large-scale gambling game organized to raise money for a public cause

Answer 39

lotteries

Question 40

book by Adam Smith where he laid down the four principles of taxing

Answer 40

The Wealth of Nations