Taxes Quiz

What is an excise tax?

• A tax levied on a person's source of revenue to the national government

• A tax levied on property in local communities

• A tax levied on the manufacture or sale of items such as cigarettes or alcohol

• A tax levied against property taxes

What is income tax?

• A tax levied on a person's source of revenue to the national government

• A tax levied on property in local communities

• A tax levied on the manufacture or sale of items such as cigarettes or alcohol

• A tax levied against property taxes

What is property tax used for?

• Paying for expenses of providing services, street construction, or maintenance

• Paying for public schools

• Paying for government fines and permits

• Paying for oil and gas production

What is a progressive tax?

• A tax rate that increases as income increases

• A tax rate that decreases as income increases

• A tax rate that remains constant regardless of income

• A tax rate that is not based on income

What is a regressive tax?

• A tax rate that increases as income increases

• A tax rate that decreases as income increases

• A tax rate that remains constant regardless of income

• A tax rate that is not based on income

What are tariffs?

• Taxes levied on property in local communities

• Taxes levied on the manufacture or sale of items such as cigarettes or alcohol

• Taxes levied against property taxes

• Taxes levied on imported or exported goods

Which of the following is tax-exempt?

• Non-profits and Churches

• Franchises

• Hotel taxes

• Motor fuels

What are some examples of local taxes?

• Sales tax, vehicle sales/rental tax, motor fuels tax

• Individual income tax, Social Security tax, Medicare taxes

• Corporate income taxes, excise taxes, oil and gas production tax

• Property taxes, sales taxes, fines, and permits

What do local taxes provide for governing bodies?

• Money necessary to operate and provide needed goods and services

• Money necessary for national defense

• Money necessary for international trade

• Money necessary for scientific research

What is the economic importance of taxes?

• To generate revenue for the government

• To reduce government spending

• To increase personal income

• To promote international trade