1. What happens to the percentage of income that is taxed when income rises, and the tax is a proportional one? Answers A. The percentage of tax falls. B. The percentage of tax rises. C. The percentage rises and then falls. D. The percentage of tax stays the same. Question2. What gives the United States government the right to collect taxes? Answers A. Declaration of Independence B. state laws C. United States Constitution D. executive order Question3. Who pays unemployment taxes? Answers A. unemployed people B. the federal government C. employers D. employees Question4. What is the difference between an estate tax and a gift tax? Answers A. Estate tax is paid on all inherited money; gift tax is only paid on amounts over $5,000. B. Estate tax is paid only on property; gift tax is paid only on money. C. Estate tax is paid by heirs of an estate; gift tax is paid by both parties of the gift. D. Estate tax is paid on the money and property of someone who died; gift tax is paid on money or property given by one living person to another. Question5. Which of the following is a discretionary spending program? Answers A. national defense B. unemployment compensation C. interest on debt D. Social Security Question6. What are two reasons Medicare costs are rising? Answers A. People are living longer and retiring earlier. B. Fewer workers are paying Medicare taxes, and benefits are going up. C. People are living longer, and medical technology