| Term | Definition |
|---|
| Progressive Tax | The wealthiest individuals paid at a higher rate than the less affluent. |
| Tax Loopholes | All manner of special interests can get some special benefit from the tax law that the rest of us must pay for but, given the complexity of the law, rarely notice. Loopholes are client politics par excellence. |
| Marginal rate | The tax rate in the highest bracket. This is the percentage of the last dollar that you earn that must be paid out in taxes |
| Tax Reform Act (1986) | Instead of high rates with big deductions, we got low rates with much smaller deductions. The big gainers were individuals; the big losers were businesses. |
| Budget Enforcement Act (1990) | It imposed a cap on discretionary (that is, non-entitlement) spending. As long as the president and Congress stay under that cap, they can change the amount of money they spend |
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