Term
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Definition
| when the federal government spends more money than it receives in taxes in a given year |
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Term
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Definition
| when the government receives more money in taxes than it spends in a year |
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Term
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Definition
| when government spending and government revenue in the form of taxes are equal |
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Term
| Define individual income tax. |
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Definition
| a tax based on the income received by individuals in all its forms |
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Term
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Definition
| a tax based on the pay received from employers; the taxes provide funds for Social Security and Medicare |
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Term
| Define progressive tax system. |
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Definition
| a tax that collects a greater share of income from those with high incomes than from those with lower incomes |
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Term
| Define marginal tax rates. |
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Definition
| the tax that must be paid on all yearly income |
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Term
| Define proportional tax system. |
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Definition
| a tax that is a flat percentage of income earned, regardless of level of income |
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Term
| Define regressive tax systems. |
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Definition
| a tax in which people with higher incomes pay a smaller share of their income in tax |
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Term
| Define corporate income tax. |
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Definition
| a tax imposed on corporate profits |
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Term
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Definition
| a tax on a specific good—on gasoline, tobacco, and alcohol |
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Term
| Define estate and gift tax. |
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Definition
| a tax on people who pass assets to the next generation—either after death or during life in the form of gifts |
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Term
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Definition
| the total accumulated amount the government has borrowed, over time, and not yet paid back |
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