Vocab Flashcards
Benefits received principal
Payment for taxes from those who benefit from the tax
Progressive tax
Those who make more money pay a higher income tax
Proportional tax
An imposed tax which causes the tax rate to stabilize
Transfer of Payments
Payments given in cash
Capital gains
Taxes on the profit from an investment or sale of property
Ability-to-pay principle
The ideal that those with the most money have to pay the most in taxes.
Negative Externality
Payment for a product that a person neither consumed or produced
Pork barrel legislation
Government spending on local projects, with all funds directed from that area
Regressive tax
More people are subjected to taxes as the rate of distribution decreases
Positive Externality
Payment given for a problem that a person not involved in would still be negatively affected financially
Sales tax
A tax on the sale of a resource
Corporate tax
Taxes on a cooperation based on profit
Least likely to offend principle
Hard to identify taxes that usually are not efficient or equal
Transfer of kind
A transfer of something of value
Productivity principle
The actions that lead to the reduction of tax costs by other firms
