Taxes Quiz - vocab

What is the purpose of excise taxes?

• To fund social insurance programs

• To reduce consumption and associated health-care costs

• To create equality between marginal tax rates and average tax rates paid

• To finance state and local governments

Which tax type is collected on the wages, salaries, investments, or other forms of income an individual or household earns?

• Sales Tax

• Property Taxes

• Individual Income Tax

• Payroll Taxes

What is the economic burden of payroll taxes?

• Paid directly by employees

• Shared equally between employers and employees

• Accepted by workers in the form of lower wages

• Paid directly by employers

Which tax type is charged on retail sales of goods and services?

• Indirect Tax

• Sales Tax

• Excise Taxes

• Regressive Taxes

What is the purpose of sin taxes?

• To reduce consumption and associated health-care costs

• To offset externalities

• To fund social insurance programs

• To create equality between marginal tax rates and average tax rates paid

Which tax type is primarily charged on immovable property like land and buildings?

• Property Taxes

• Sales Tax

• Payroll Taxes

• Individual Income Tax

What is the characteristic of a regressive tax?

• Takes a percentage based on the value of the property owned

• Takes the same percentage from all income earners

• Takes a larger percentage from low-income earners

• Takes a larger percentage from high-income earners

Which tax system assesses the same tax rate on everyone regardless of income or wealth?

• Progressive Tax

• Proportional Tax

• Regressive Tax

• Indirect Tax

What is the purpose of property taxes?

• To reduce consumption and associated health-care costs

• To fund social insurance programs

• To create equality between marginal tax rates and average tax rates paid

• To fund state and local governments

Which tax type is collected by one entity in the supply chain and passed on to the consumer as part of the purchase price?

• Excise Taxes

• Indirect Tax

• Sales Tax

• Regressive Taxes