The marginal tax rate shows

a.the deductions permitted for child care and medical expenses.

b.the percentage of income a typical family pays in tax.

c.the extra tax due on an extra dollar of income.

d.the average rate of taxation in the economy.

Provincial sales taxes are

a.regressive because they tax consumption at the same rate for both rich and poor.

b.proportional because everyone is charged the same percentage tax rate.

c.progressive because higher income earners pay more tax.

d.regressive because higher income families don't pay as much tax as lower income families.

A tax system that has higher marginal tax rates as income increases is known as a

a.regressive tax system

b.flat-tax system

c.proportional

d.progressive tax system.

A family making $30,000 pays $4,500 in taxes and a family making $40,000 pays $5,500 in taxes. The tax system is

a.progressive

b.proportional.

c.flat-rate.

d.regressive.

A capital gain

a.is the increase in income that is not subject to personal income taxation.

b.is the positive difference between the purchase price and the sale price of an asset.

c.is the negative difference between the purchase price and the sale price of an asset.

d.is the income received from stocks and bonds.

Dividends are paid to shareholders out of a corporation's

a.after-tax profits

b.capital gains

c.before-tax profits

d.retained earnings.

The corporate income tax in Canada

a.excludes dividends paid out.

b.results in individuals being double-taxed on corporate earnings.

c.only taxes retained earnings.

d.does not apply to profits earned on exports.

The largest source of receipts for the Canadian federal government is

a.import duties.

b.corporate income taxes.

c.personal income taxes.

d.capital gains tax