Income Quiz

Your abilities include:

• The things you do well

• Your mental competence

• The skill you need to do something

• All of the above

Career planning is done:

• After high school

• In college

• Throughout a lifetime

• Once in a lifetime

Who pays taxes?

• Most people who have a job

• Most people who purchase items

• Most people who own property

• All of the above

Federal, Social Security, and Medicare are all types of taxes.

• True

• False

The total amount of earnings made over one year period after all deductions have been taken is known as

• Gross annual income

• Gross monthly income

• Net annual income

• Net monthly income

The total amount of earning made over a month, before any deductions, is known as

• Gross annual income

• Gross monthly income

• Net annual income

• Net monthly income

Most sales taxes are regressive because

• taxable purchases are capped at $50,000 a year.

• wealthier people pay less tax on a purchase than poorer people would pay on the same item.

• most people cannot afford to buy such luxury goods as yachts, furs, and diamonds.

• poorer taxpayers spend a larger proportion of their income on taxable goods and services than do wealthier taxpayers.

Which of these taxes is the leading source of revenue for the federal government?

• corporate income taxes

• individual income taxes

• inheritance taxes

• property taxes

The Internal Revenue Service routinely collects taxes from employees through a system of

• assessments

• audits

• entitlement

• withholding

Which of these is a progressive tax?

• excise tax

• luxury tax

• property tax

• Social Security tax