| A | B |
|---|
| progressive tax | Type of tax that takes a larger percentage of income from a high-income person than from a low-income person |
| proportional tax | Type of tax that takes the same percentage of income from individuals at all income levels |
| regressive tax | Type of tax that takes a larger percentage of income from a low-income person than from a high-income person |
| ability-to-pay principle | States that people with more income or wealth should pay more in taxes |
| benefits-received principle | States that people who benefit directly from certain goods and services shold pay for them |
| excise tax | Tax on goods regulated by the federal government such as alcohol, tobacco and firearms |
| estate tax | Tax levied on the assets of a person who has died |
| property tax | Tax on the assets of individuals or firms |
| budget surplus | Occurs when government revenues are greater than government expenditures |
| budget defecit | Occurs when government expenditures exceed government revenues |
| defecit spending | Government purposefully exceeds revenues with expenditures |
| national debt | Total amount of money that the federal government owes its creditors |
| grant-in-aid | Transfer payments from the federal government to state or local governments |
| tariffs | Tax on imported goods into the United States |
| sales tax | Tax levied on the sale of some goods or services |
| FICA | Social Security tax |
| tax return | Lists a person's income and any payments or refunds that are due |
| gift tax | Tax placed on the transfer of certain gifts of value |
| corporate income tax | Federal tax levied on a business corporation's profit |
| OMB | Manages fiscal policy |
| Federal Reserve Board | Manages monetary policy |
