income

budget

A plan for earning and spending money

income left after taxes, bills, and necessities are paid

Discretionary income

discretionary income

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

Income earned before taxes are deducted

Gross income

Income earned after taxes are deducted (2 answers)

Net income and disposable income

regressive tax

A tax for which the percentage of income paid in taxes decreases as income increases

progressive tax

A tax for which the percentage of income paid in taxes increases as income increases

proportional tax

A tax in which the average tax rate is the same at all income levels.

excise tax

Consumer tax on a specific kind of good or service

disposable income (definition)

Income remaining for a person to spend or save after all taxes have been paid (used to budget with)

example of regressive tax

Sales tax

example of progressive tax

federal income tax

Disposable income is the same as

net income

Net Income

the total amount of income from wages after payroll deductions

Gross Income

the total amount of income from wages before any payroll deductions