question
budget deficit
answer
an excess of government spending over government receipts
question
budget surplus
answer
an excess of government receipts over government spending
question
average tax rate
answer
total taxes paid divided by total income
question
marginal tax rate
answer
the extra taxes paid on an additional dollar of income
question
lump-sum tax
answer
a tax that is the same amount for every person
question
benefits principle
answer
the idea that people should pay taxes based on the benefits they receive from government services
question
ability-to-pay principle
answer
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
question
vertical equity
answer
the idea that taxpayers with a greater ability to pay taxes should pay larger amounts
question
horizontal equity
answer
the idea that taxpayers with similar abilities to pay taxes should pay the same amount
question
proportional tax
answer
a tax for which high-income and low-income taxpayers pay the same fraction of income
question
regressive tax
answer
a tax for which high-income taxpayers pay a smaller fraction of their income than do low-income taxpayers
question
progressive tax
answer
a tax for which high-income taxpayers pay a larger fraction of their income than do low-income taxpayers
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
