Taxation Quiz

What is a relatively high tax designed to raise revenue and reduce consumption of a socially undesirable product such as liquor or tobacco?

• Consumption Tax

• Sales Tax

• Sin Tax

• Modification Tax

What is a federal tax levied on the wages, salaries, and other income of individuals?

• Payroll Tax

• Income Tax

• Sin Tax

• Property Tax

What is a general state or city tax levied on a product at the time of sale?

• Property Tax

• Consumption Tax

• Value-added Tax

• Sales Tax

What is the type of tax in which the percentage of income paid in tax rises as the level of income rises?

• Progressive Tax

• Regressive Tax

• Marginal Rate Tax

• Flat Tax

A tax whereby people with lower incomes pay a higher fraction of their income than people with higher incomes.

• Progressive Tax

• Regressive Tax

• Marginal Tax

• Flat Tax

What is a tax on the value added at every stage of the production process?

• Sales Tax

• Property Tax

• Value-added Tax

• Capital Gains Tax

A tax in which the average tax rate is the same at all income levels.

• Proportional Tax

• Progressive Tax

• Regressive Tax

• Flat Tax

What is the Federal Insurance Contributions Act (FICA) tax commonly called?

• Individual Retirement Accounts

• Medicaid

• Medicare

• Social Security

What tax is the Federal Government's main source of revenue?

• Tariffs

• Property Taxes

• Value-added Tax

• Individual Income Tax

What are the profits from the sale of an asset held for 12 months or longer?

• Capital Gains

• Corporate Profits

• Sales Tax

• Estate Tax