Taxes

Taxes

Multiple Select

What are some of the ways people try to EVADE taxes?

• Failing to report all or some of income

• Report income gained through activities such as gambling and selling stolen goods.

• Don't report all the tips they collect or money earned from garage sales, baby-sitting, tutoring, or yard work.

Open Ended

What is tax avoidance?

Multiple Choice

Which tax principle gives rise to the progressive tax system?

• Ability to Pay

• Benefits Received

Multiple Choice

Under the Ability to Pay Principle, individuals who earn more income

• Will not pay more taxes.

• Will pay more taxes because they use more government goods and services.

• Will pay more taxes because they have the ability to pay more.

Multiple Choice

What does the Benefits Received Principle assert?

• Individuals who receive the benefit of a good or service should pay the tax necessary to supply that good or service.

• Individuals who receive the benefit of a good or service shouldn't pay the tax necessary to supply that good or service.

• People who earn more money should pay more in taxes so that people who make less money can benefit from them

Multiple Select

What are some of the arguments FOR the Ability to Pay Principle?

• It allows those with the most resources the ability to pool together the fund required to provide services needed by many.

• It is considered more equitable as the burden of taxation is limited based on a person’s ability to pay.

• People are motivated to pay taxes when they perceive that the money they pay to government is actually being used for their own benefit.

Multiple Select

What are some of the arguments AGAINST the Benefits Received Principle?

• Benefits received from public goods and services provided by government are difficult to estimate.

• It conflicts with income redistribution programs.

• It discourages economic success since it burdens wealthier individuals with a disproportionate amount of taxation.

Multiple Select

Which kind of taxes put more of a burden on lower income earners?

• Progressive

• Regressive

• Proportional

Fill in the Blanks

A progressive tax is based on the taxpayer's

Multiple Choice

What is NOT one of the arguments for a progressive tax?

• Reduces the tax burden on the people who can least afford to pay.

• Tends to collect more taxes than flat or regressive taxes.

• Requires those with the greatest amount of resources to fund a greater portion of the services that we rely on.

• More convenient to calculate.

Multiple Choice

Which kind of tax imposes the same tax rate on everyone, regardless of income?

• Progressive

• Regressive

• Proportional

Multiple Choice

The income tax bracket in the U.S. is considered a

• Progressive system

• Regressive system

• Proportional system