Beginning of Unit 7 Quiz

Which level of government sometimes collects income tax depending where you are?

• State governments

• Every state government

• Local governments

• Federal government

Payroll taxes are collected by which level of government?

• State

• County

• City

• Federal

Property taxes mainly pay for what level of government’s expenses?

• State government

• Military government

• Local government

• Federal government

Capital gains taxes are paid when a person does what?

• Earn a paycheck

• Receive a gift

• Receive tips from customers

• Sells an investment

What are regressive taxes?

• Taxes that are proportion to income

• Taxes that affect lower income people more than higher income

• Taxes that are paid after recessions

• Taxes that are progressive to income levels

Progressive tax rates will increase when what happens?

• As income increases

• As income decreases

• As tax rates fall

• As a recession approaches

The federal government collects ______ to pay for ______.

• payroll tax...state parks

• Income tax… post offices

• sales tax...military

• property tax...police and fire departments

New taxes are created when…

• Lawmakers write new tax laws

• The President orders new taxes

• States deduct taxes from paychecks

• The Justice Department sues state governments

Which of the following is a regressive tax?

• Tax breaks for low-income workers

• Federal income tax

• Clothing tax

• Corporate tax

Which of the following are state expenses?

• Roads

• Military

• Social Security

• Medicare