Legal Aspects - Taxes

Front

Where does the largest share of federal tax revenue come from? Options: Corporate taxes, General sales taxes, Individual income taxes, Property taxes

Back

Individual income taxes

Front

According to which principle, do low wage earners pay a smaller percentage of their income to taxes than wealthy taxpayers?

Back

Vertical equity

Front

What is paid to discourage the purchase of goods that do not promote consumers’ health?

Back

Sin tax

Front

Which of the following has a purpose to make consumers pay the price of manufacturing and distribution of certain products? Excise tax, Luxury tax, Sin tax, User tax

Back

Excise tax

Front

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

Back

flat

Front

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

Back

progressive

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.

Back

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