| A | B |
|---|
| tax | a required payment to a local, state, or national government |
| revenue | income received by a government from taxes and nontax sources |
| tax base | income, property, good, or service that is subject to a tax |
| individual income tax | a tax on a person's earnings |
| property tax | a tax on the value of a property |
| corporate income tax | a tax on the value of a company's profits |
| proportional tax | a tax for which the percentage of income paid in taxes remains the same for all income levels |
| progressive tax | a a tax for which the percentage of income paid in taxes increases as income increases |
| regressive tax | a tax for which the precentage of income paid in taxes decreases as income increases |
| incidence of a tax | the final burden of a tax |
| withholding | taking tax payments out of an employee's pay before he or she receives it |
| tax return | form used to file income taxes |
| taxable income | income on which tax must be paid |
| taxable income | total income minus exemptions and deductions |
| personal exemption | set amount that you subtract from your gross income for yourself, your spouse, and any dependents |
| deductions | variable amounts that you can subtract, or deduct from your gross income |
| FICA | taxes that fund Social Security and Medicare |
| Social Security | Old-Age, Survivors, and Disability Insurance (OASDI) |
| Medicare | a national health insurance program that helps pay for health care for people over age 65 or with certain disabilities |
| 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 on money or property that one living person gives to another |
| tariff | a tax on imported goods |
| tax incentive | the use of taxation to encourage or discourage certain behavior |
| mandatory spending | spending on certain programs that is mandated, or required, by existing law |
| discretionary spending | spending category about which government planners can make choices |
| entitlement | social welfare program that people are "entitled to" if they meet certain elgibility requirements |
| Medicaid | entitlement program that benefits low-income families, some people with disabilities, and elderly people in nursing homes |
| operating budget | budget for day-to-day expenses |
| capital budget | budget for major capital, or investment expenditures |
| balanced budget | budget in which revenues are equal to spending |
| tax exempt | not subject to taxes |
| real property | physical property such as land and buildings |
| personal property | possessions such as jewelry, furniture, and boats |
| tax assessor | an official who determines the value of a property |
