Tax Flashcards
1
Q
Progressive Tax
A
Taxed more with more income
Tax in the US
2
Q
Regressive Tax
A
Constant dollar amount Tax
Sales Tax
3
Q
Proportional Tax
A
Same percentage Tax for all incomes
4
Q
Marginal Tax Rate
A
Tax rate applied to each additional dollar of income (tax brackets)
5
Q
Payroll Tax
A
Tax on wages that firm pays its workers
6
Q
Social Insurance Tax
A
Pays for Social Security and Medicare
7
Q
Effects of Labor Tax
A
Encourages fewer working hours, retiring earlier and black market growth
8
Q
Effect of Tax on Market
A
Tax reduces quantity produced
9
Q
Who pays the larger part of a Tax?
A
The more inelastic curve pays more
10
Q
Deadweight Loss
A
A market failure
11
Q
Unit Excise Tax
A
???
12
Q
Effects of Unit Excise Tax
A
???
