Chapter 7 Macro
10%
A family with an average tax rate of 10% would have a marginal tax rate of ____ percent.
luxury cars
A tax on___ would be least regressive
more in Social Security tax than in personal income tax
A wage earner making $10,000 pays_____
75
About___ percent of all Americans pay more in social security tax than in personal income tax.
Protecting society from violence and invasion, protecting all society, and maintaining public works
Adam Smith's three duties of government_____
Excise Taxes
Aimed at specific goods
Social Security tax
An example of a direct regressive tax would be the______.
taxes paid divided by taxable income
Average Tax Rate = (Formula)
nearly 1.5 trillion
During the last half of 2008 and the first half of 2009, the congress passed and the president signed two bills totaling about_____ in an attempt to avert the Great Recession.
1. stabilization 2. economic regulation 3. provision of goods and services
Economic Role of Government (3)
Per-unit taxes on specific goods
Excise taxes are____
Medicare, Medicaid, social security, food stamps, spending on poor americans, defense expenditures, and national debt
Federal Government spending includes:______ (7)
5
Federal government spending on medicare and medicaid have increased by a factor of ____ between 1969 and 2011.
Fostering competition, price stability, low unemployment
Goals of the federal government (3)
Regressive Taxes
Heavily on the poor
1530
If you earned 10,000 in 2010 working for yourself, how much did the federal government collect payroll tax?
the marginal tax rate exceeds the average tax rate.
In a progressive tax structure____
Planning the production and distribution of most economic goods
In modern free enterprise economies, ____ is not an economic role of government.
10
Individuals with taxable incomes of between $0 and $8,350 are in the ___ percent tax bracket
26%
Interest payments on the national debt are projected to be about _____ by 2046.
additional taxes paid divided by additional taxable income
Marginal Tax Rate = (Formula)
regressive
Most excise taxes are_____
True
Most federal government revenue comes from the personal income tax.
Depression and WWII
Most of the growth of the govt. was due to _____ and ______
15, 10
Most u.s. residents are taxed at marginal rates of ___ and ___ percent.
True
Only govt. purchases are counted in GDP.
Average Tax Rate
Overall rate you pay on your entire income.
Proportional Taxes
Place an equal burden on the rich, middle class, and the poor.
Progressive Taxes
Places a burden on those best able to pay and little or no burden on the poor.
Marginal Tax Rate
Rate you pay on your last few hundreds of dollars earned; tax bracket
Payroll Taxes
Social Security and Medicare taxes are matched by employer.
corporate, estate, excise, personal income, payroll Taxes
Sources of Federal Revenue (5)
Personal Income, Property, and Sales Taxes
Sources of state and local revenue (3)
Education, Health, and Welfare
State and Local govt. spending constitutes_____ (3)
Corporate Income Tax
Tax on a corporations profits
Estate Tax
Tax on estates of people who die.
Indirect Taxes
Tax on goods and services we purchase. Ex: sales and excise taxes
Direct Taxes
Tax with your name on it. Ex: personal income and social security
October 1- September 30 the following year
The Government's fiscal year begins on______
Direct
The corporate income tax is____
1933
The economic policy of the U.S. Government could have been described as laissez-faire until about____
less
The federal personal income tax is____ progressive than it was in 1980.
Spends trillions of dollars, levies trillions of dollars in taxes, redistributes hundreds of billions of dollars, regulates economy
The govt. exerts four basic economic principles____,____,___, and _____
taxes that both workers and employers pay
The money that pays Social Security benefits is raised by_____
is an indirect tax
The sales tax_____
False
There are now nine federal personal income tax brackets
income, deductions and exemptions
To find your family's taxable income, you need to subtract your____ and your_____.
Govt. Spending
Total that the federal, state, and local govts. spend on everything.
Direct, Indirect, Progressive, Proportional, and Regressive
Types of Taxes (5)
less than .2%
We spend____ of our GDP on foreign aid.
property taxes are the basic source of revenue and education the major type of expenditure.
With respect to local finance, it is correct to say that____
salaries received by social workers employed by the federal government.
___ is NOT an example of a transfer payment.
Income security such as Social Security
____ accounts for the largest percentage of all federal expenditures.
Property taxes are an important source of revenue for the federal government
____ does not apply to the U.S. tax structure.
Veterans' benefits
____ is an example of a transfer payment.
Property tax and expenditures for education
_____ represents the chief source of income and the most important type of expenditure of local governments. (2)
Personal Income
largest source of Federal Revenue