SPEA V186 Test One – Questions With Expert
Solutions
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Terms in this set (138)
What is Horizontal Equity two taxpayers in similar situations pay the same tax
What is the Haig-Simons income Consumption plus change in net wealth
definition?
What is consumption in reference to All income
the Haig-simons framework?
What is change in netwealth in Assets-liabilities
reference to Haigh-simons
framework?
What is a corrective tax? A tax levied on economic activities that produce
negative externalities
What is an example of a corrective Environmental excise taxes
tax?
, What is the definition of Marginal Tax It is the tax rate on an additional dollar earned
Rate?
How is marginal tax rate determined? Marginal tax rate is the change in tax divided by the
(formula) change in income
How is Marginal Tax Rate typically Typically, it is the percentage rate specified for the
shown? tax bracket into which the additional dollar falls.
What is the largest source of Tax Property Tax
Revenue for Local Government?
What are Estimated Taxes? Quarterly payments business owners make to the
IRS for income that isn't taxed automatically through
your paycheck
How can a business shift taxes levied Two main ways: Forward shifting and backward
on a business? shifting
What is forward shifting? A business raises the price of its goods or services
to include the tax cost, so the burden falls on the
buyer
What is backward shifting? A business shifts the tax burden backward to
suppliers or employees by negotiating lower
supplier prices or reducing employee wages.
What are personal exemptions? set amounts that allows an exemption for each
person in a taxpaying unit (household members)
How are personal exemptions By a flat amount per person and the number of
determined? people in the taxed unit (family).
Who receives a greater tax reduction People in higher tax brackets
from personal exemptions?
Solutions
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Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (138)
What is Horizontal Equity two taxpayers in similar situations pay the same tax
What is the Haig-Simons income Consumption plus change in net wealth
definition?
What is consumption in reference to All income
the Haig-simons framework?
What is change in netwealth in Assets-liabilities
reference to Haigh-simons
framework?
What is a corrective tax? A tax levied on economic activities that produce
negative externalities
What is an example of a corrective Environmental excise taxes
tax?
, What is the definition of Marginal Tax It is the tax rate on an additional dollar earned
Rate?
How is marginal tax rate determined? Marginal tax rate is the change in tax divided by the
(formula) change in income
How is Marginal Tax Rate typically Typically, it is the percentage rate specified for the
shown? tax bracket into which the additional dollar falls.
What is the largest source of Tax Property Tax
Revenue for Local Government?
What are Estimated Taxes? Quarterly payments business owners make to the
IRS for income that isn't taxed automatically through
your paycheck
How can a business shift taxes levied Two main ways: Forward shifting and backward
on a business? shifting
What is forward shifting? A business raises the price of its goods or services
to include the tax cost, so the burden falls on the
buyer
What is backward shifting? A business shifts the tax burden backward to
suppliers or employees by negotiating lower
supplier prices or reducing employee wages.
What are personal exemptions? set amounts that allows an exemption for each
person in a taxpaying unit (household members)
How are personal exemptions By a flat amount per person and the number of
determined? people in the taxed unit (family).
Who receives a greater tax reduction People in higher tax brackets
from personal exemptions?
