Taxation Quiz

Which type of tax takes a larger percentage of income from higher-income earners than from lower-income earners?

• Regressive tax

• Proportional tax

• Progressive tax

• Direct tax

A sales tax is typically considered a:

• Proportional tax

• Regressive tax

• Progressive tax

• Flat tax

A proportional tax is also known as a:

• Flat tax

• Tiered tax

• Sliding tax

• Marginal tax

In a regressive tax system:

• Everyone pays the same percentage regardless of income

• Lower-income earners pay a higher percentage of their income than higher-income earners

• Higher-income earners pay a higher percentage of their income than lower-income earners

• No taxes are levied on income

Income tax is an example of a:

• Direct tax

• Indirect tax

• Proportional tax

• Sales tax

Property tax is typically based on the:

• Owner's annual income

• Assessed value of the property

• Number of dependents the owner has

• Owner's spending habits

Which of the following is NOT a direct tax?

• Income tax

• Property tax

• Sales tax

An indirect tax is one that:

• Is paid directly to the government by individuals

• Is levied on income directly

• Is included in the price of goods and services

• Is progressive in nature

Which of the following taxes is generally considered indirect?

• Income tax

• Sales tax

• Property tax

• Estate tax

The primary role of the FDIC is to:

• Insure bank deposits

• Regulate the stock market

• Set federal tax rates

• Oversee the national budget