Our Tax System (FL2)

Federal income tax is an example of what type of tax?

• progressive

• regressive

• proportional

Property tax is an example of what type of tax?

• progressive

• regressive

• proportional

Sales tax is an example of what type of tax?

• progressive

• regressive

• proportional

Which will decrease the amount you owe in taxes by more?

• $1000 tax credit

• $1000 tax deduction

• They decrease your taxes equally.

Willful failure to pay taxes is called

• tax avoidance.

• tax evasion.

• tax exempt.

• tax deferral.

People can go to prison for breaking tax laws.

• True

• False

Who might be claimed as dependent on your taxes?

• Your 6 year old child.

• Your 20 year old child who is in college.

• Your 75 year old mother.

• All of these people might be your dependents.

Which type of income is taxable?

• money received as a birthday gift

• life insurance benefits

• money received as an inheritance

• interest received on a savings bond

Which type of income is not taxable?

• tips

• dividend income

• child support

• unemployment compensation

If income, deductions, and all other relevant information is exactly the same other than filing status, who will pay the most in taxes?

• single person

• married couple

• head-of-household