A principle of taxation that states that higher tax rates should be paid
by those who can afford to pay more, even if their benefit is
equal to or less than the benefits received by others.
The responsibility of government to help the economy provide the
assortment of goods and services most desired by the people.
A procedure sometimes used by government agencies to decide whether or
not a proposed project should be undertaken.
A principle of taxation that states that the amount of tax a person
should pay for the marginal unit of a good or serv ice should
equal the money equivalent of the bene fit that he or she
expects to receive from it.
When inflation pushes taxpayers into higher tax-rate brackets.
Those goods and services that are consumed by the community as a group.
Taxes based on the net income (accounting profits) of corporations.
Taxes used to discourage activities giving rise to negative externalities
399).
The responsibility of government to alter the distribution of income, as
necessary, to obtain the degree of income equality considered
appropriate.
When the total burden of a tax is greater in value than the amount of
money collected by the government from the tax.
A tax imposed on either the sale or the manufacture of a product.
Beneficial effects of an action over which the person receiving the
benefit has no control.
Harmful effects of an action over which the person suffering the harm has
no control.
An economic effect (either beneficial or harmful) experienced by a person
who has no control, through the market system, over the action
that led to the effect.
A system of government consisting of several distinct levels of
government such as the national, state, and local governments in
the United States.
A system of government in which the responsibilities of government are
divided up, each placed in the hands of the level best able to
do the job.
A tax with only one tax-rate bracket.
The public finance problem that arises because people seek to obtain
collective goods or services at the expense of others.
Act: A 1985 U. S. act that attempts to bring about balanced budgets by
establishing year-by-year deficit-reduction targets.
Programs under which money from a higher level of government is handed
over to a lower level of government.
An attempt to alter the amount of income or wealth inequality among
people in a society.
A system that automatically makes adjustments for changes in the general
price level.
The tax rate applicable to the next dollar of income that might be
received by a taxpayer.
A situation in which the market is unable to perform satisfactorily.
A term used in reference to tax rates in property taxation; a mil is 1 /
10th of a percent.
A characteristic of a good or service that makes it impossible or
extremely expensive to deny any person in the community the
opportunity to consume the good or service once it has been
produced.
A characteristic of a good or service that means that one person can
benefit from it without causing any significant reduction in the
benefits others receive from it.
Expenditures such as extraordinary medical expenses, charitable
contributions, certain interest payments, certain state and
local taxes, and casualty losses that can be subtracted from
income in determining net income subject to tax.
The amount that can be deducted for the taxpayer(s) and each dependent in
calculating income subject to tax.
A budget process employed in the United States during the 1960s that was
designed to counteract a bias in the direction of deficit
spending; this system required agencies to specify the different
programs they wished to carry out and to plan expenditure needs
for several years in advance.
The indication or pronouncement of an individual's desire for public
goods and services.
Benefits received by an individual directly participating in a
transaction, as distinguished from benefits received by others.
The costs incurred by persons participating in a transaction, as
distinguished from costs experienced by others.
A tax structured so that persons with higher incomes pay a higher
percentage of their income in tax than do persons with lower
incomes.
Taxation designed to re distribute after-tax incomes in the direction of
greater equality.
A tax imposed on the market value of property and collected annually from
the owners of the taxed properties.
A tax structured so that per sons with higher incomes pay exactly the
same percentage of their income in tax as do person with lower
incomes.
An area of study that combines economics and political science in an
effort to understand how decisions are made in group situations.
A tax structured so that the aver age rate of tax is lower for those with
high income than it is for those with lower income.
The division of resources among alterative uses.
A tax imposed on the sale of a product.
The total value of opportunities for gone because of the production and
consumption of a product. It includes both private cost and
external cost.
The responsibility of government to moderate fluctuations in the volume
of aggregate economic activity and assure reasonable levels of
employment, price stability, and economic growth .
A deduction in calculating income taxes that applies if people choose not
to itemize specific personal deduction amounts.
A payment by someone other than the buyer that helps to cover the cost of
a good or service.
The amount actually subjected to a tax.
A range of income over which a specified tax rate is applicable.
Payments or contributions that a government requires from persons within
its jurisdiction or from property or transactions located in its
jurisdiction.
A process of transferring the burden of a tax either forward in the from
of higher prices to consumers or backward in the form of lower
wages for labor or lower prices for other inputs.
Payments that are not in exchange for any good produced or service
rendered during the year in question.
A price the government charges as a condition for the use of a service.
