Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.

1. Question

   Property tax Proportional tax Profits tax Lump-sum tax Incidence Tax base Payroll tax Income tax Sales tax Excise tax Tax structure Progressive tax Tax rate Administrative costs Regressive tax Ability-to-pay principle Marginal tax rate Wealth tax Benefits principle Trade-off between equity and efficiency

   the principle of tax fairness by which those with greater ability to pay a tax should pay more tax. the percentage of an increase in income that is taxed away. the resources used (which is a cost) by government to collect the tax, and by taxpayers to pay it, over and above the amount of the tax, as well as to evade it. specifies how a tax depends on the tax base; usually expressed in percentage terms. a tax on the value of goods sold. a tax that is the same percentage of the tax base regardless of the taxpayer’s income or wealth. a tax that takes a larger share of the income of high-income taxpayers than of low-income taxpayers. a per unit tax on sales of a good or service. a tax on the value of property, such as the value of a home. the measure or value, such as income or property value, that determines how much tax an individual pays. the dynamic whereby a well-designed tax system can be made more efficient only by making it less fair, and vice versa. the amount of tax people are required to pay per unit of whatever is being taxed. a tax that takes a smaller share of the income of high-income taxpayers than of low-income taxpayers. a tax on the income of an individual or family. the principle of tax fairness by which those who benefit from public spending should bear the burden of the tax that pays for that spending. a tax on the profits of a firm. a tax on the wealth of an individual. a tax that is the same for everyone, regardless of any actions people take. a measure of who really pays a tax. a tax on the earnings an employer pays to an employee.

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