Taxes: Crash Course Economics #31

What did U.S. Supreme Court Justice Oliver Wendell Holmes say about taxes in 1927?

• Taxes are the government's way of earning.

• Taxes are a necessary evil for societal development.

• Taxes are the dues we pay for membership in an organized society.

• Taxes are what we pay for civilized society.

Which type of tax is considered regressive?

• Corporate taxes

• Estate taxes

• Sales taxes

• Income taxes

What is the primary purpose of taxation?

• To raise money for government services

• To punish the wealthy

• To control the population

• To fund private enterprises

Which historical figure led the Salt March as a form of tax rebellion?

• Mohandas Gandhi

• Winston Churchill

• Martin Luther King Jr.

• Nelson Mandela

What is a characteristic of progressive taxes?

• They reduce government revenue.

• They apply the same tax rate to everyone.

• They are considered unfair by most economists.

• They shift the burden of taxation to higher income earners.

Which tax is meant to encourage people to drive less?

• Income taxes

• Luxury taxes

• Property taxes

• Gasoline taxes

What type of taxes are Value Added Taxes (VAT) and sales taxes examples of?

• Regressive taxes

• Proportional taxes

• Direct taxes

• Indirect taxes

What happens when you move into a higher tax bracket in the U.S.?

• You receive fewer government services.

• All your income is taxed at the higher rate.

• You only pay the higher rate on income above the previous bracket's limit.

• Your tax rate doubles.

Which tax was introduced by France to reduce consumption of sugary drinks?

• Carbon taxes

• Luxury taxes

• Fat taxes

• Soda taxes

What is the effect of a flat tax?

• It applies only to corporations.

• It exempts low-income earners.

• It increases government spending.

• It simplifies the tax code and feels fair to some.