Taxes

Front

a tax in which the tax rate increases as the taxable amount increases

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progressive

Front

a tax system with a constant marginal rate, usually applied to individual or corporate income.

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flat

Front

A popular suggestion is to eliminate the income tax and replace it with a national sales tax, called the fair _____? The idea is that everyone pays their fair share based on what they spend rather than what they earn.

Back

tax

Front

A _____________tax may at first appear to be a fair way of taxing citizens because everyone, regardless of income level, pays the same dollar amount. By taking a closer look, it is easy to see that such a tax causes lower-income people to pay a larger share of their income than wealthier people pay

Back

regressive

Front

A _________ tax, also referred to as a flat tax, impacts low-, middle- and high-income earners relatively equally.

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proportional

Front

A _______ tax system, or a ______ tax system, assesses the same tax rate to taxpayers regardless of income or wealth. It is meant to create equality between marginal tax rate and average tax rate paid. Under a proportional tax system, individual taxpayers pay a set percentage of their income regardless of total income earned.

Back

proportional, flat

Front

Under a ________ tax system, individuals and entities with low incomes pay a higher amount of that income in taxes compared to high-income earners.

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Regressive

Front

What type of tax is assessed as a percentage of the asset that the taxpayer purchases or owns, rather than based on the individual's ability to pay? Options: Regressive, Proportional, Flat, Progressive

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Regressive

Front

There are generally three major ways that U.S. taxpayers pay taxes: ________ tax, progressive tax and proportional tax.

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regressive

Front

Proportional taxes are taxes that stay the same regardless of a person's or business's income. For example, some sales taxes are considered proportional because a tax rate of 8% in a certain state would apply to all customers in that state and take the same fraction of their ________.

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income