US Tax System Concepts

Front

What is the largest source of tax revenue for the US government?

Back

Personal income taxes

Front

If the government spends more money in a year than they collect in taxes, they have a budget ________ and this is added to the ____________.

Back

deficit; national debt

Front

If your marginal tax rate is increased from 25% to 29%, this means 29% of your earned income will be paid in taxes.

Back

False

Front

In the United States, high income earners pay a lower tax rate than middle income earners.

Back

False

Front

Since sales tax is a flat percentage, the burden of this tax is equal regardless of the payer's income.

Back

False

Front

Gas taxes are a good example of the ___________ principle, since the tax is the same per gallon, but people who drive more will pay more in gas taxes.

Back

benefits-received

Front

A capital gains tax would be collected on the profitable sale of all of the following EXCEPT: financial assets (stocks, bonds, ETFs, crypto, etc), your house, collectibles (jewelry, fine art, rare memorabilia)

Back

a product or service created by your business

Front

Property taxes are used primarily to fund ________.

Back

local schools

Front

Most wealthy people who avoid paying taxes are not breaking the law.

Back

True

Front

In addition to risking fines, interest payments, and potentially criminal charges, under-reporting your income to the IRS can also: lower your credit score, make it harder to borrow money for a large purchase, prevent you from getting hired, result in higher interest rates on your credit card

Back

make it harder to borrow money for a large purchase