Unit 3 Vocabulary Flashcards
The highest source of revenue for the Federal Government. tax levied on the wages, salaries, dividends, interest, and other income a person earns throughout the year.
Income Tax
The higher the person’s income, the higher the tax.
Progressive Tax
When an employer deducts income tax, as well as Social Security tax known as FICA.
Payroll Tax
A tax based on a corporation’s profit.
Corporate Income Tax
Tax on the manufacture, sale and consumption of goods. These are often called “hidden tax”.
Excise Tax
Examples of this tax: Gasoline, Tobacco, Telephone Services, and Luxury Cars
Excise Tax
A tax that takes a larger percentage of income from lower-income groups than higher-income groups.
Regressive Tax
Tax placed on the assets (the estate) of one who dies.
Estate Tax
Tax imposed on the gift of a living person.
Gift Tax
Tax imposed on goods brought into the US
Custom Duty
What is this spending?
Social Security, Unemployment, and Medicare.
Mandatory Spending
What is this spending?Health, Veteran’s Benefits, Education, and Housing Assistance.
Discretionary Spending
Payments made for borrowed money
Net Interest
Money borrowed by the government and not yet repaid.
Public Debt
Money you ask the bank for, and when you pay it back, there’s this money that accumulates as you pay it back to the bank.
Interest Rates
