ECONOMICS TOPIC 8

The right of citizens of the United States to vote in any primary or other election for President or Vice President, for electors for President or Vice President, or for Senator or Representative in Congress, shall not be denied or abridged by the United States or any State by reason of failure to pay any poll tax or other tax.

—24th Amendment to the Constitution of the United States

According to the 24th Amendment, it is illegal to

• vote in national elections without having paid the proper taxes.

• use tax revenues to pay for national elections.

• require payment of a tax in order to vote in national elections.

• require people to pay a tax if they fail to vote in national elections.

Which type of tax takes a higher percentage of income from poorer people than from wealthier people?

• regressive

• progressive

• excise

• proportional

In this illustration, approximately what share of taxable income does the highest earner actually pay in taxes?

• 15 percent

• 24 percent

• 25 percent

• 30 percent

In a progressive tax system, which of the following statements must be true?

• People with lower incomes pay the lowest share of their income in taxes.

• People with higher incomes pay the lowest share of their income in taxes.

• People in the lower-income groups pay the highest dollar amount in taxes.

• People in all income groups pay the same amount in taxes but at different rates.

What does this graph show about who pays for a $.50 tax increase on a given good in a market where demand for the good is elastic?

• Consumers and suppliers split the burden of the tax increase.

• Consumers pay $.40 and suppliers absorb $.10 of the tax increase.

• Consumers pay $.40 of the tax increase, and the rest is not collected by government.

• Consumers pay $.10 and suppliers absorb $.40 of the tax increase.

According to the cartoonist, what important characteristic of a tax is missing in this case?

• balance

• equity

• simplicity

• certainty

The goal of the structure shown in this table is to make federal income taxes

• more certain.

• proportional.

• more progressive.

• simpler

The humor behind this cartoon is based on what observation about federal income taxes?

• The tax rate for millionaires is too high.

• Even lower-income people may have to pay income taxes.

• Federal income taxes are actually regressive.

• Everyone but millionaires pays taxes at essentially the same rate.

This graph supports which of the following statements?

• Tariffs today mostly serve to protect certain industries.

• Tariffs are still a significant source of federal revenues.

• Tariffs are a highly regressive tax.

• Federal revenue has dropped substantially since 1900

Which of the following has likely contributed most to the development shown in this graph?

• an excise tax

• a progressive tax

• a payroll tax

• tax withholding