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Related Flashcards
Related Topics
Cards In This Set
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Excise tax
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Tax on sales of a good or service
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Incidence of a tax
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Measure of who really pays it
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Tax rate
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Amount of tax people are required to pay per unit of whatever is being taxed
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Administrative costs
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Resources used by government to collect the tax and by taxpayers to pay it
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Benefits principle
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Those who benefit from public spending should bear the burden of the tax that pays for that spending
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Lump-sum tax
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Same tax for everyone
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Ability-to-pay principle
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Those with greater ability to pay the tax should pay the tax
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Trade-off between equity and efficency
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System more efficient by making it less fair, vice versa
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Tax base
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Measure/value, such as income or property value
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Tax structure
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Specifies how the tax depends on the tax base
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Income tax
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Tax on an individual/family based on income
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Payroll tax
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Tax on earnings employer pays to an employee
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Sales tax
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Tax on value of goods sold
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Profits tax
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Tax on a firms profits
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Property tax
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Tax on the value of property, such as a home
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