taxes

Question 1

_______ is a mandatory payment to a government

Answer 1

tax*

Question 2

______ is government income from taxes

Answer 2

revenue *

Question 3

_______ wants people who receive benefits from the government to pay more in taxes

Answer 3

benefits-received principle of taxation*

Question 4

________ thinks people should be made to pay taxes according to ability to pay

Answer 4

ability to pay principle of taxation*

Question 5

tax systems attempt to meet three criteria:

Answer 5

equity simplicity efficiency *

Question 6

__________means fairness or how uniformly tax is applied

Answer 6

equity

Question 7

_________ is determined by how easy it is to pay and understand taxes

Answer 7

simplicity

Question 8

________ is based on how well taxes raises revenue for the government

Answer 8

efficiency

Question 9

a ______ is a form of wealth that are subject to tax

Answer 9

tax base

Question 10

___________ is based on an individual’s income from all sources - largest source of taxes

Answer 10

individual income tax

Question 11

________ is based on a corporation’s profits

Answer 11

corporate income tax

Question 12

________ is based of the value of goods or services at the time of the sale

Answer 12

sales tax

Question 13

_________ is based on the value of an individual’s or business’s assets

Answer 13

property tax

Question 14

________ takes the same amount of income from all tax payers

Answer 14

proportional tax

Question 15

________ places a higher percentage rate of tax on higher income people, federal tax

Answer 15

progressive tax*

Question 16

_______ takes a larger percentage of income from low income people, sales tax

Answer 16

regressive tax

Question 17

flat taxes usually charges rates from __________ percent of income

Answer 17

3-5

Question 18

proportional tax charge ________ percent of income

Answer 18

1-3

Question 19

the ______ of a tax is the finial burden of that tax

Answer 19

incidence*

Question 20

a__________ is the use of taxes to encourage economic behaviors

Answer 20

tax incentive

Question 21

_____________ are taxes imposed on products that are harmful or unhealthy

Answer 21

sin tax*

Question 22

_________ is money taken out of a paycheck before you receive it

Answer 22

payroll tax

Question 23

the _________ is the government agency that collects money

Answer 23

IRS

Question 24

when should taxes be filled?

Answer 24

april 15

Question 25

what are the two types of tax deductions?

Answer 25

standard and itemized

Question 26

__________ is a payroll tax that provides coverage for the elderly, the disabled - known as social insurance covers social security

Answer 26

FICA

Question 27

_________ is a federal program to aid older citizens - 6.2 percent of income

Answer 27

social security

Question 28

_________ is a health insurance program for people over 65

Answer 28

medicare

Question 29

_________ is a program funded by federal and state taxes and administered by the states

Answer 29

unemployment compensation

Question 30

___________ is the 3rd larges source of revenue for the govt

Answer 30

corporate income tax

Question 31

tax breaks include:

Answer 31

investments in buildings, equipment, research, and rules that benefit multinational corporations

Question 32

_________ is tax on a property that is transferred to others on the death of owner

Answer 32

estate tax**

Question 33

the _________ is a tax on property given by one living person to another

Answer 33

gift tax

Question 34

________ is a tax on the production or sale of a specific good

Answer 34

excise tax

Question 35

the_______ is a tax on imported goods known as tariffs

Answer 35

customs duty**

Question 36

_______ is money charged for the use of a good or service

Answer 36

fee user

Question 37

the two programs the govt spends tax revenue on:

Answer 37

mandatory spending - required by law **

discretionary spending - authorized each year

Question 38

_________ makes up over half of all federal spending

Answer 38

mandatory spending

Question 39

________ is a joint federal-state medical insurance program for low income people

Answer 39

medicaid

Question 40

the ________ is the plan for spending federal tax money

Answer 40

federal budget

Question 41

________ are specific amounts of money set aside for specific purposes

Answer 41

appropriations

Question 42

_________ when govt buys things needed to operate

Answer 42

direct spending

Question 43

_______ is money distributed to people who do not provide something in return

Answer 43

transfer payment

Question 44

the federal govt influences the economy in three ways:

Answer 44

resource allocation
income redistribution
competition with the private sector

Question 45

________- economy owned by individuals

Answer 45

private sector