Chapter 6 Self-Review

Chapter 6 Self-Review - Chapter 6 Self-Review 30/03/2008...

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Chapter 6 Self-Review 30/03/2008 18:23:00 There are three sources of funding for governments: User charges Taxes Borrowing Government Budget Constraint     : the limit on government spending and transfers  for a given period Tax Base     : The value of goods, services, wealth, or incomes subject to taxation Tax Rate     : the proportion of a tax base that must be paid to the government as  taxes Marginal Tax Rate     : the change in the tax payment divided by the change in  income. The marginal tax rate is applied to the highest tax bracket reached. Tax Bracket     : A specific interval of income. Average Tax Rate     : the proportion of total income paid in taxes. Taxation Systems     : Proportional taxation : regardless of an individual’s income, the tax bill  comprises exactly the same proportion Progressive Taxation
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This note was uploaded on 11/13/2008 for the course ECON 203 taught by Professor Al-sabea during the Fall '05 term at USC.

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Chapter 6 Self-Review - Chapter 6 Self-Review 30/03/2008...

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