Chapter 8 Lesson 4

What is a wealth tax based on?

• Income

• Market value of owned assets

• Number of dependents

• Level of education

Which of the following is considered a wealth tax?

• Excise tax

• Income tax

• Sales tax

• Property tax

What is the main source of revenue for local governments?

• Sales tax

• Income tax

• Property tax

• Excise tax

When is a capital gains tax paid?

• When buying a new property

• When receiving an inheritance

• When selling an inherited gift

• When making a donation

What is the annual gift tax limit in 2023?

• $17,000

• $20,000

• $15,000

• $10,000

Which tax is applied to the transfer of money or assets without getting something of equal value in return?

• Gift tax

• Sales tax

• Income tax

• Property tax

Where are federal estate taxes applicable?

• Only in the state of New York

• Only in the state of California

• No matter where you live in the United States

• Only in certain states

What is the argument in favor of wealth tax reducing wealth inequality?

• It encourages people to spend wealth

• It increases revenues by taxing real estate

• It reduces wealth inequality

• It reduces the incentive to keep working for money

What is the argument against wealth tax causing double taxation?

• It reduces the incentive to keep working for money

• It reduces wealth inequality

• It encourages wealthy business owners to leave the U.S.

• It causes citizens to pay taxes on the same assets multiple times

What is a good idea when it comes to adjusting your W-4?

• Finding extra money in your budget

• Reducing your income

• Avoiding taxes completely

• Not giving back to others