Vocab Eco.

Medicaid

A joint federal and state program that helps low-income individuals or families pay for the costs associated with long-term medical and custodial care, provided they qualify

Regressive Tax

A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder.

Tax Incentive

A tax incentive is an aspect of a country's tax code designed to incentive, or encourage a particular economic activity.

Balanced Budget

Balanced budget in which revenues are equal to expenditures

Corporate Income Tax

Corporate taxes are taxes against profits earned by businesses during a given taxable period; they are generally applied to companies' operating earnings, after expenses such as COGS, SG&A and depreciation have been deducted from revenues.

Progressive Tax

DEFINITION of 'Progressive Tax' A tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals.

Tax Base

DEFINITION of 'Tax Base' The assessed value of a set of assets, investments or income streams that is subject to taxation, or the assessed value of a single asset that is subject to taxation. Anything that can be taxed has a tax base.

Taxable Income

DEFINITION of 'Taxable Income' The amount of income that is used to calculate an individual's or a company's income tax due. Taxable income is generally described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments that are allowable in that tax yea

Individual Income Tax

Definition of "Income Tax" A tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund

FICA

Federal Insurance Contributions Act

Property Tax

Property tax is the annual amount paid by a land owner to the local government or the municipal corporation of his area. Definition: Property tax is the annual amount paid by a land owner to the local government or the municipal corporation of his area.

Proportional Tax

Proportional tax is the taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income. Definition: Proportional tax is the taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income.

Tax Exempt

Tax exemption refers to a monetary exemption which reduces taxable income. Tax exempt status can provide complete relief from taxes, reduced rates, or tax on only a portion of items.

Capital Budget

The process in which a business determines whether projects such as building a new plant or investing in a long-term venture are worth pursuing.

Tax

a compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions

Tax Return

a form on which a taxpayer makes an annual statement of income and personal circumstances, used by the tax authorities to assess liability for tax.

Estate Tax

a tax levied on the net value of the estate of a deceased person before distribution to the heirs.

Sales Taxes

a tax on sales or on the receipts from sales.

Gift Tax

a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not. The gift tax applies to the transfer by gift of any property

Tariff

a tax or duty to be paid on a particular class of imports or exports.

Social Security

any government system that provides monetary assistance to people with an inadequate or no income.

Operating Budget

combination of known expenses, expected future costs, and foretasted income over the course of a year.

Discretionary Spending

discretionary spending is government spending implemented through an appropriations bill.

Real Property

fixed property, principally land and buildings.

Incidence of a Tax

in economics, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. Tax incidence is said to "fall" upon the group that ultimately bears the burden of, or ultimately has to pay, the tax

Revenue

income, especially when of a company or organization and of a substantial nature.

Tax Assessor

local government official who determines the value of a property for local real estate taxation purposes

Mandatory Spending

mandatory spending refers to budget authority and ensuing outlays provided in laws other than appropriations acts, including annually appropriated entitlements.

Personal Property

movable property; belongings exclusive of land and buildings.

Withholding

refuse to give (something that is due to or is desired by another).

Deductions

the action of deducting or subtracting something.

Entitlement

the fact of having a right to something.

Medicare

the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease

Personal Exemption

the process of freeing or state of being free from an obligation or liability imposed on others.