Question 20

A regressive tax:

A)	takes the same percentage of taxes from income from all taxpayers.

B)	requires those with low incomes to pay a smaller percentage of their income than high-income people.

C)	is levied so that low-income taxpayers pay a greater proportion of their income toward taxes than high-income taxpayers.

D)	taxes everyone the same amount, regardless of their income.

Question 21

The two sources that contribute roughly 80 percent together of total tax revenues are:

A)	personal income tax and payroll tax.

B)	personal income tax and corporate income tax.

C)	corporate income tax and payroll tax.

D)	personal income tax and excise tax.

Question 22

The marginal tax rate refers to the tax rate charged on the:

A)	last dollar a taxpayer earns.

B)	income earned from buying investments and selling them at a higher price.

C)	earnings of individuals.

D)	value of a good or service being purchased.

Question 23

A payroll tax is a tax on the:

A)	earnings of individuals.

B)	income earned by buying investments and selling them at a higher price.

C)	wages paid to an employee.

Question 24

FICA, the tax that supports Medicare and Social Security, is generally:

A)	proportional.

B)	progressive.

C)	regressive.

D)	a flat tax that adjusts with inflation.