38 terms

Economics of Govt (Ch. 16/23)

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progressive tax
A tax in which the average tax rate rises with income. People with higher incomes will pay a higher percentage of their income in taxes.
regressive tax
flat rate tax
excise tax
a tax on certain items such as alcohol, tobacco, and gasoline
estate tax
A tax on the estate, or total value of the money and property, of a person who has died
gift tax
A tax paid on gifts of cash or property. The tax is paid by the donor
tax return
A declaration of taxable income and of the exemptions and deductions claimed.
custom duty
Tax (tariff) on goods brought into the United States.
interest
A sum paid or charged for the use of money or for borrowing money
deficit
The amount by which expenditures exceed income
public debt
the total of the nation's debts: debts of local and state and national governments
capital
human made resources used to produce goods and services
entrepreneur
individual who uses the factors of production to produce goods and services
free enterprise
capitalism
monopoly
firm that is the only source of a good or service
trust
several companies, same line of business, combine to control the market
laissez-faire theory
government should play a very limited role in the economy
welfare state
provides extensive social services at little or no cost to the public
collectivization
state ownership of production
privatization
privately owned production
5-year plan
goal of a centrally planned economy to obtain a certain level within a given time
controllable spending
education aid, military expenditures, environmental protection programs
uncontrollable spending
Social Security, Medicare, unemployment benefits
socialism
taxation, nationalism, public welfare
communism
role of the party, collectivization, 5 year plan, state ownership
factors of production
land, labor, capital, entrepreneuer
socialism definition
wealth distributed equally throughout a society
Communism definition
collective or state ownership of all production property
capitalism
private ownership with wealth equity
Karl Marx
father of modern day Socialism
Law of Demand
prices go down, demand goes down
Law of Supply
prices go down, supply goes up
Laissez-Faire
maintain police and courts, provide foreign relations and national defense, functions not provided for by private enterprise
China
country that experienced Great Leap Forward
Limits on Congress's power to tax
cannot charge export taxes, all taxes must be same rate for states, taxes must be used for public purposes, taxes must be equally apportioned among the states
Reasons Congress would borrow money
to fund large scale projects, for crisis situations and large scale projects
Congress
authorizes all federal borrowing
Civil War
First income tax in 1861 was levied to provide funds for which war?
IRS
government agency that collects personal income taxes.