POS 160 Chapter Notes - Chapter 13: Revenue Bond, Procyclical And Countercyclical
16 May 2019
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Own-source revenue: monies derived by a government from its own taxable resources. Intergovernmental transfers: the movement of money or other resources from one level of government to another. Countercyclical aid: a transfer of federal dollars to states and localities to counteract a downturn in the economic cycle. Tax capacity: the taxable resources of a government jurisdiction. Tax effort: the extent to which a jurisdiction exploits its taxable resources. Regressive tax: tax in which the rate falls as the base or taxable income rises, advantaging those with higher income. Progressive tax: tax in which the rate rises as the base or taxable income rises, advantaging those with lower income. Proportional (flat) tax: tax in which people pay an identical rate regardless of income or economic transaction. Benefit principle: principle that taxes should be levied on those who benefit directly from a government service. Indexing: system were tax brackets are automatically adjusted to account for inflation.
