Chapter 12

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Author:
Ruth5151
ID:
19819
Filename:
Chapter 12
Updated:
2010-05-18 20:19:08
Tags:
Economics Mankiw
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Description:
A.P. Economics textbook, Chapter 12 vocabulary
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  1. average tax rate
    total taxes paid divided by total income
  2. marginal tax rate
    the extra taxes paid on an additional dollar of income
  3. lump-sum tax
    a tax that is the same amount for every person
  4. benefits principle
    the idea that people should pay taxes according to the benefits they receive from government spending
  5. ability-to-pay principle
    the idea that taxes should be levied on a person according to how well that person can shoulder the burden
  6. vertical equity
    the idea that taxpayers with a greater ability to pay taxes should pay larger amounts
  7. horizontal equity
    the idea that taxpayers with similar abilities to pay taxes should pay the same amount
  8. proportional tax
    a tax for which high-income and low-income taxpayers pay the same fraction of income
  9. regressive tax
    a tax for which high-income taxpayers pay a smaller fraction of their income than do low-income taxpayers
  10. progressive tax
    a tax for which high-income taxpayers pay a larger fraction of their income than do low-income taxpayers

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