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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

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