Ch 13-14 Economics, principles in action

Which of these is a progressive tax?

• airport tax

• income tax

• property tax

• sales tax

Who primarily uses our tax money?

• Your employer

• The state government

• The Federal government

• Local Businesses

What types of taxes contribute to Federal tax revenue? ( hint: choose 4 correct answers :)

• Corporate Income Tax

• Income Tax

• Estate Tax

• Excise Tax

Which of the following is NOT a category in the Federal government's spending?

• Mandatory spending

• Discretionary spending

• Interest on loans issued

• Interest on national debt

a tax in which the tax rate increases as the taxable amount increases

• progressive
• regressive
• flat
• proportional

a tax system with a constant marginal rate, usually applied to individual or corporate income. 

• regressive
• progressive
• income
• flat

A _____________tax may at first appear to be a fair way of taxing citizens because everyone, regardless of income level, pays the percentage. By taking a closer look, it is easy to see that such a tax causes lower-income people to pay a larger share of their income than wealthier people pay

• progressive
• income
• flat
• regressive

A _________ tax, also referred to as a flat tax, impacts low-, middle- and high-income earners relatively equally. 

• regressive
• proportional
• income

Under a ________ tax system, individuals and entities with low incomes pay a higher amount of that income in taxes compared to high-income earners. 

• Regressive
• Progressive
• Proportional
• Flat

Proportional taxes are taxes that stay the same regardless of a person's or business's income. For example, some sales taxes are considered proportional because a tax rate of 8% in a certain state would apply to all customers in that state and take the same fraction of their ________. 

• taxes
• income
• family
• friends