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12 ECON Vocab 9
study material for Vocab CH 9 Economics - Ponder
| Term | Definition |
|---|---|
| payroll withholding system | system requiring employers to deduct income taxes from employees' paychecks and send it directly to the government |
| sin tax | relatively high tax on socially undesirable products, such as tobacco |
| property tax | tax on tangible and intangible possessions, such as real estate, buildings, furniture, stocks, bonds, and bank accounts |
| individual income tax | tax on people's earnings |
| indexing | upward revision of the tax brackets to compensate for the effects of inflation |
| investment tax credit | reduction in business taxes based on investment in new plants and equipment |
| payroll taxes | Medicare and FICA |
| progressive tax | tax that imposes a higher percentage rate of taxation on people with higher incomes than on people with lower incomes |
| capital gains | profits from the sale of an asset held for 12 months |
| excise tax | tax on the manufacture and sale of selected items |
| tax loophole | exceptions in the tax law that allow some people to avoid paying taxes |
| Medicare | federal health care program for senior citizens |
| Surcharge | additional tax above and beyond the base rate |
| proportional tax | tax in which everyone pays the same percentage regardless of income |
| corporate income tax | tax paid by corporations on their income |
| Federal Insurance Contributions Act (FICA) | tax levied on both employer and employees to pay for Social Security and medicare |
Created by:
breckart2
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