Taxation and Government Revenue Quiz

What part of the Constitution gives the federal government the right to tax?

• Article I, Section 8, Clause 1

• Article II, Section 3, Clause 4

• Article III, Section 1, Clause 2

• Article IV, Section 2, Clause 3

What was a major problem with the Articles of Confederation that was addressed by giving the federal government the right to tax?

• The government couldn't provide services without money

• The government had too much power

• The states were too independent

• The military was too weak

Why would tax bills originate in the House of Representatives?

• Because it is more democratic

• Because they are more in touch with a smaller percent of a state's population

• Because it offers equal representation for the larger states in the Senate

• Because it is mandated by the President

What is an example of how the government places a tax on a good to discourage public purchasing?

• Lowering taxes on essential goods

• Taxing imported goods

• Taxing luxury items

• Increasing taxes on tobacco and alcohol

What is the main characteristic of a progressive tax?

• The more money you make, the less the government takes

• The more money you make, the more the government takes

• Everyone pays the same percentage regardless of income

• The poor pay more taxes than the rich

What type of tax is the individual income tax, and what percentage of government revenue does it represent?

• Progressive tax - 49%

• Regressive tax - 33%

• Proportional tax - 26%

• Excise tax - 87%

Why is the social insurance tax considered regressive?

• It is a flat tax.

• People who pay more receive the benefits in the end.

• It's a flat tax, inflicting a heavier burden on the poor.

• Only the rich have to pay it.

What are three things that the social insurance tax pays for?

What is a protective tariff?

• A tax on imported goods to make domestic products more competitive

• A tax on exported goods to encourage local consumption

• A subsidy provided to local businesses to promote exports

• A fee charged for exporting goods to maintain trade balance

What is the main purpose of an estate tax?

• To tax the transfer of property after someone's death

• To collect taxes on property sales during a person's lifetime

• To tax the income generated from an inherited estate

• To tax the gifts given to individuals before death