part 2 of study guide 5

part 2 of study guide 5 - 1 Progressive Tax any tax in...

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1. Progressive Tax a. any tax in which the rate increases as the amount subject to taxation increases b. provide for the commondefence, promote the generalWelfare, c. It has been applied by the federal government to tax rich people versus poor people. It was first introduced by British Tax act 1798 d. This would be effective if the republicans werent so againt it 2. Regressive Tax a. a tax such as a sales tax that applies equally to every purchaser but which results in taking a larger percentage of income from a low-income person than from a high-income person b. provide for the commondefence, promote the generalWelfare c. it was applied by the republican party in the income tax d. this would not be effective at all because it would burden the poor 3. Graham-Rudman-Holllings Act (1995) a. The Gramm-Rudman-Hollings Balanced Budget and Emergency Deficit Control Act of 1985 (Pub.L. 99-177, title II, December 12, 1985, 99 Stat. 1038, 2 U.S.C. § 900) and Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Pub.L. 100-119, title I, Sept. 29, 1987, 101 Stat. 754, 2 U.S.C. § 900) (both often known as Gramm-Rudman) were, according to U.S. Senator Phil Gramm of Texas, "the first binding constraint imposed on federal spending, and its spending caps have become part of every subsequent U.S. budget. Together with a rapidly growing economy it produced the first balanced federal budget in a quarter of a century." b. establish Justice, insure Domestic Tranquility, c. The federal Government 4. Laissez-Fair Economics a. A doctrine first introduced by Adam Smith in 1776 in his book The Wealth of Nations that held that an economic
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part 2 of study guide 5 - 1 Progressive Tax any tax in...

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