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10 terms

Taxation

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benefits-received principle
principle that those who receive the benefits of what taxes pay for should pay the most in taxes
ability-to-pay principle
principle that those with higher incomes should pay more in taxes than those with lower income
proportional tax
a tax for which the percentage of income paid in taxes remains the same for all income levels
progressive tax
any tax in which the rate increases as the amount subject to taxation increases
regressive tax
tax where people with lower incomes pay a larger percent of their income (sales tax)
fixed rate mortgage
mortgage interest rate does not change during the entire term of the loan.
flexible rate mortgage
mortgage interest rate that changes with inflation
adjustable rate mortgage
has an interest rate that increases or decreases during the life of the loan
renegotiable rate mortgage
renegotiated loan where the maturity is fixed but the interest rate, and hence the monthly payment, is renegotiated periodically
graduated payment mortgage
buyers pay lower initial monthly payments in the earlier years with payments rising in successive years