Chapter 14

What does FICA fund?

Social Security and Medicare

What determines “means testing?”

income

Taxes that pay for older citizens, people with disabilities, and surviving family members of wage earners are called?

Social Security

What does the government collect from you so it can pay bills as they

come due?

Income taxes

A social welfare program that provides benefits to people who meet a certain

eligibility is called?

Entitlement benefit

A major source of tax revenue for local governments?

Property taxes

If you pay a tax based on the total bill, this is what kind of tax?

proprortional

Sales tax is proportional and this

regressive

How much is your tax if you get taxed 20% of the $40,000 you make?

8,000

Give an example of a tax deduction.

Home mortgage interest, donations, some medical expenses

What does FICA fund?

Social Security and Medicare

Is education spending discretionary or mandatory?

discretionary

A tax on gas is known as an

Excise tax

Give an example of mandatory spending

Social security

What happens to the money your employer takes out of your check?

Your employer sends it to the federal government.

Is a convenience store tax exempt?

no

What types of things does AZ spend tax money on?

State police, campgrounds, water, education

The main source of funding for schools comes from

Property tax

A tax on the value of money a person has when he dies

Estate tax

A tax of the same percentage for all income levels

Flat tax

A tax on money earned

Income tax

Tax on a company’s profit

Corporate income tax

Taking tax out of pay before you get it

withholding

Amounts you can subtract from your income

deductions

Final burden of a tax is also called…

Incidence of a tax

Entitlement program that benefits low income families, people with

disabilities and elderly

medicaid

Land and businesses

Real property

Not subject to taxes is…

Tax exempt

An official who determines the value of property

assessor

Income, property or good subject to a tax

Individual income tax

Form used to file taxes

Tax return

Use of taxation to discourage certain behaviors

Tax incentive

National health insurance to pay for health care for elderly

medicare

Revenue is equal to spending

Balanced budget

Spending on some programs is required by law

Mandatory spending

Spending category where government planners can make choices

Discretionary spending

Tax on imported good

tariff