sales tax | levied when a commodity is sold to its final consumer | |
fiscal policy | government actions concerning taxation and public expenditure | |
optimal | the best/the most likely to bring success | |
a loophole | small mistake or exception in a law that allows people to avoid paying sth | |
tax wedge | all the money we earn but never see | |
tax shelter | postponing the payment of taxes (3rd pillar) | |
a boom | long period of expansion | |
GDP | the total market value of all goods and services produced in a country during specified period | |
commercialize | organize sth to make profit | |
deficit | the amount of money that is smaller than is needed | |
surplus | the amount of money that is larger than is needed | |
wealth tax | tax on a net worth (as a % of net worth or net worth exceeding certain level) | |
income tax | payed on wages and salaries | |
unfettered | not limited by any rules or controls | |
externalities | positive or negative consequences of economic actvities experienced by other people | |
money supply | the total amount of money available in the economy at a particular time | |
capital gains tax | tax payed on income from sale of capital assets | |
progressive tax | tax levied at a higher rate on higher incomes | |
monetary policy | government or central bank actions concerning the rate of growth of money in the circulation | |
trough | the stage that marks the end of a period of contraction and the transition to expansion | |
lump sum | the income level at which a person begins paying income taxes | |
tax avoidance | use of legal methods to modify a financial situation in order to lower the amount of income tax | |
equilibrium | a state of balance | |
tax evasion | illegal practice where a person/organization intentionally avoids paying tax liability | |
balance of payments | the difference between the funds a country receives and those it pays for international transactions | |
consumption | purchasing and using goods and services | |
depression/slump | a downturn that lasts a year or two | |
downturn/contraction | a decline in economic activity | |
upturn/expansion | an increase in economic activity | |
recession | a downturn that lasts more than 6 months | |
Keynesianism | theory that government monetary and fiscal policy should stimulate business activity in a recession | |
demand | the willingness and ability of consumers to purchase goods and services | |
supply | the willingness and ability of businesses to offer goods and services for sale | |
allocation | distribution according to plan | |