True or False:
1. If a higher-income person pays more in total taxes than a lower-income person, those taxes would be considered progressive.
2. Excise taxes, such as those on alcohol, tobacco, and gasoline, tend to be the most regressive taxes.
3. Excise taxes can lead to economic inefficiency.
4. A larger share of state and local government revenues are from the federal government in grants than from state and local personal and corporate income taxes.
5. For the most part taxes are inefficient because they change incentives and alter the true value buyers and sellers place on goods and services.
6. Most taxes provide incentives for individuals to work hard, save, and invest.
7. The ability to pay principle sates that those with the least ability to pay taxes should pay more than those with the greatest ability to pay taxes.
8. The gasoline tax is a good example of the benefits received principle.