Taxes & Federal Gov't

This is the principal of taxation based on the belief that taxes should be paid according to the level of income regardless of benefits received.

• sales
• property
• ability to pay
• ability to earn

This is a tax in which a percentage of income is paid regardless of the level of income. This is also know as a flat tax.

• progressive
• marginal
• ability to pay
• proportional

This is a tax where a percentage of income paid in tax rises as levels of income rises.

• regressive
• progressive
• marginal
• proportional

Tax where the percentage of income paid in tax goes down as income rises.

• regressive
• progressive
• sales
• flat

General revenue tax levied on the manufacturer or sale of selected items.

• corporate
• excise
• gift
• property

What is the main source of federal government revenue?

• individual income tax
• sales tax
• corporate income tax
• Social Security

With-holdings from your paycheck that go into the federal government program that provides health insurance for people 65 and older

• 401k
• Social Security
• Medicare
• Medicaid

Which type of tax comes directly out of your paycheck?

• Property Tax
• Sales Tax
• Income Tax
• Ad Valorem Tax

Bruce makes $100,000 per year.
Steve makes $50,000 per year.
Tony makes $30,000 per year.  
Bruce pays 30% in taxes, Steve pays 20%, and Tony pays 10%.  This tax is

• Proportional
• Progressive
• Regressive
• I have no idea.

Federal tax that taxes corporations on their profits.

• corporate income tax
• import tax
• sales tax
• estate tax