ECON Unit 4 Warm-up

What MUST taxes be used for?

• The common defense and general welfare.

• Individual interests.

• Both A and B.

• None of the above.

What branch of the federal government has the power to tax?

• The Executive Branch (The President)

• The Legislative Branch (Congress)

• The Judicial Branch (The Supreme Court)

• All three branches

The percentage of taxes increases as income increases. (Select the tax structure that matches this statement).

• Progressive Tax Structure

• Regressive Tax Structure

• Proportional Tax Structure

• None of the above

The same percentage is placed on all incomes, no matter how high or how low it is. (Select the tax structure that matches this statement).

• Progressive Tax Structure

• Regressive Tax Structure

• Proportional Tax Structure

• None of the above

The percentage of taxes decreases as income increases. (Select the tax structure that matches this statement).

• Progressive Tax Structure

• Regressive Tax Structure

• Proportional Tax Structure

• None of the above

____________ are taxed, while ____________ cannot be taxed.

• Imports, Exports

• Exports, Imports

If you donate money to a charity, that is considered a _____________, which will _______________ the amount of taxes you will have to pay.

• tax exemption, raise

• tax deduction, raise

• Tax exemption, lower

• Tax deduction, lower

Please identify the taxes that are taken directly from your paycheck. (Select all that apply).

• Social Security tax

• sales

• Unemployment tax

• Income tax

• Property tax

How much money can you receive from someone without being taxed (Via the Gift Tax)?

• $5,000

• $10,000

• $14, 000

• $24,000

Why does the government put a behavior/luxury tax on some items?

• The government wants to encourage you to buy those items.

• The government wants to discourage you from buying those items.