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Microeconomics ch 12
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Budget Deficit
An excess of government spending over receipts.
Budget Surplus
An excess of government receipts over government spending.
Average Tax Rate
Total taxes paid divided by total income.
Marginal Tax Rate
The extra taxes paid on an addtional dollar of income.
Lump-Sum Tax
A tax that is the same amount for every person.
Benefits Principle
The idea that people should pay taxes based on the benefits they receive from government services.
Ability-to-pay Principle
The idea that taxes should be levied on a person according to how well that person can shoulder the burden.
Verticle Equity
The idea that taxpayers with a greater ability to pay taxes should pay larger amounts.
Horizontal Equity
The idea that taxpayers with similar abilities to pay taxes should pay the same amount.
Proportional Tax
A tax for which high-income and low-income taxpayers pay the same fraction of income.
Regressive Tax
A tax for which high-income taxpayers pay a smaller fraction of their income than do low-income taxpayers.
Progressive Tax
A tax for which high-income taxpayers pay a larger fraction of their income than do low-income taxpayers.
Author
fillup
ID
136223
Card Set
Microeconomics ch 12
Description
Microeconomics ch 12
Updated
2/19/2012, 2:13:18 AM
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