Role of Government in the Economy

2. is a tax based on an individual’s income from all sources.
3. is a tax on goods imported into the United States from another country. It is also known as a tariff.
6. is a tax that is collected from a worker’s paycheck.
11. is a joint federal-state medical insurance program for low-income people.
12. the use of taxes to encourage or discourage certain economic behaviors.
14. is a mandatory payment to a local, state, or national government.
17. is a federal program to aid older citizens who have retired, children who have lost a parent or both parents, and people with disabilities.
18. is a tax based on a corporation’s profits.
19. places a higher percentage (%) rate of taxation on high-income earners than on low-income earners.
20. Each year the President and Congress work together to establish the _, a plan for spending federal tax money.

1. is a tax based on the value of an individual’s or business’s assets, generally real estate.
4. is a tax based on the value of designated goods or services at the time of sale.
5. is a person’s income earned after deductions and taxes.
7. Introduced in 1966, _ is a national health insurance program for citizens over 65.
8. is a tax on property that is transferred to others on the death of the owner.
9. The federal budget is prepared for a __, a 12-month period for which an organization plans its expenditures.
10. is government spending that is required by current law.
13. is government income from taxes and nontax sources.
15. Each year, taxpayers must complete a __, a form used to report income and taxes owed to various levels of government (local, state, federal government).
16. is the Federal Insurance Contributions Act, a payroll tax that provides coverage for the elderly, the unemployed due to disability, and surviving family members of wage earners who have died.