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:
| | |
| | |
| | |
| | | D) | a flat tax that adjusts with inflation. | |
