Economics of Taxation

Synonym of equity

• Fairness

• Unfairness

• stock market

What is the main source of the government revenue?

• Taxation

• Charity

• Foreign investment

What is an income tax?

• Percentage of the individual’s income, which goes to the government

• Percentage we pay when we buy goods and services which are not essential

• The percentage we have to pay for the good we take with us from abroad

When the tax rate increases as income increases, the tax is called

• progressive

• situational

• proportional

• regressive

When the tax rate decreases as income increases, the tax is called

• proportional

• progressive

• regressive

• retrogressive

When people pay the same percentage regardless of income it is

• a progressive tax

• a proportional tax

• a regressive tax

The United States federal income tax operates on a marginal tax rate

• True

• False

What is currently the lowest marginal tax rate in the United states

• 5%

• 10%

• 13%

• 15%