12. The Big Wig Company is one of the largest manufacturers in the country, yet it paid very little in corporate income taxes last year. This is probably because Answers A. corporate taxes only apply to small companies. B. it claimed many deductions, which reduced its taxable income. C. the company opted to pay higher property taxes instead. D. the company mainly exports goods, which are not taxable. Question13. Chad's family lives below the poverty line. Both of his parents work at low-income jobs that do not provide health insurance. Which entitlement program offers healthcare for Chad? Answers A. Medicaid B. Medicare C. Social Security D. FICA Question14. What is the main source of funding for most local public schools? Answers A. state sales taxes B. local property taxes C. payroll taxes D. federal income taxes Question15. What tax did the government create to keep people from giving away their money before they die? Answers A. excise tax B. estate tax C. gift tax D. import tax Question16. Refer to Figure 8.6 on page 333 in your textbook. What percentage of American federal spending in 2012 went for Social Security? Answers A. 15.3 percent B. 10.7 percent C. 19.2 percent D. 21.9 percent