| A | B |
|---|
| Sin Tax | relatively high tax designed to raise revenue and discourage |
| benefit principle | belife that taxes should be paid according to benefit |
| ability to pay | belief that taxes should be paid according to level of income |
| proportional tax | tax in which percentage of income paid in tax is the same regardless |
| regressive tax | where % of income paid in tax rises as level income rises |
| individual income | tax levied on the wages,salaries,and other income of individuals |
| IRS(Internal Revenue Service) | branch of treasury department that collects taxes |
| tax return | annual report filed with local, state, or federal government detailing income earned and taxes owed |
| indexing | adjustment of tax bracket to offset the effect of inflation |
| FICA (Federal Insurance Contributions Act) | tax levied on employers and employees to support social security and medicare |
| coporate income tax | tax on coporate profits |
| excise tax | general revenue tax levied on the manufacture or sale of selected items |
| estate tax | tax on the transfer of property when a person dies |
| gift tax | tax on donation of money or wealth that is paid by the donor |
| custom duty | tax on imported products |
| user fee | fee paid for the use of good or service, form of a benefit tax |
| intergovermental revenues | funds one level of government receives from another level of government |
| sales tax | general state or city tax levied on a product at the time of sale |
| property tax | tax on tangible and intangible possessions such as real estate, buildings, furniture, stocks, bonds and bank accounts |
| VAT (Value Added Taz) | tax on the value added at every stage of the production process |
| public sector | tat part of the economy made up of the local,state and federal governments |
| transfer payments | payment for which the government receives nether goods nor services in return |
| grant in aid | transfer payment form one level of gaovernment to another not involving compensations |
| destribution of income | way in which the nations income is divided among families, individuals or ogher designated groups |
| federal budget deficit | excess of federal expenditures over tax and revenue collelctions |
| deficit spending | annual government spending in excess of taxes and other revenues |
