Understanding Taxes

Identify the sources of the government’s authority to tax in the U.S. Constitution.

• Article I, Section 8

• Article II, Section 3

• Article III, Section 2

• Article IV, Section 4

Describe types of tax bases and tax structures.

• Income tax and progressive tax

• Sales tax and regressive tax

• Property tax and proportional tax

• All of the above

What is a tax?

• A type of fruit

• A government-imposed financial charge

• A style of music

• A brand of clothing

A progressive tax is:

• A tax that decreases as income increases

• A tax that remains constant regardless of income

• A tax that increases as income increases

• A tax that is only applied to luxury goods

A proportional tax is:

• A tax that takes a larger percentage of income from high-income earners than from low-income earners.

• A tax that takes the same percentage of income from all income earners.

• A tax that takes a smaller percentage of income from high-income earners than from low-income earners.

• A tax that is only applied to luxury goods.

A regressive tax is:

• A tax that takes a larger percentage from low-income earners

• A tax that takes a larger percentage from high-income earners

• A tax that is the same percentage for all income levels

• A tax that increases as income increases

A sales tax is:

• A tax on the sale of goods and services

• A tax on income

• A tax on property

• A tax on imports

Which of the following is something Congress cannot tax?

• Voting (poll tax)

• Goods

• Income

• Property

Fill in the blank: Property Tax is a tax based on the value of _______ and buildings, usually paid by property owners.

• land

• vehicles

• income

• furniture

What is the tax rate for married filing jointly earning $400,000 in 2024?

• 22%

• 24%

• 32%

• 35%