Paying Taxes Review

What is the income tax rate in Michigan?

• 4.25%

• 5.00%

• 6.00%

• 7.25%

What is the purpose of a W4 Form?

• To report annual income to the IRS

• To determine tax withholding from paychecks

• To apply for a tax refund

• To file a tax return

What is the percent sales tax in Michigan?

• 4%

• 6%

• 8%

• 10%

Which level of government sets the sales tax?

• Federal government

• State government

• Local government

• International government

What is the main source of Federal Government Revenue?

• Corporate taxes

• Income taxes

• Sales taxes

• Property taxes

FICA pays for which of the following programs?

• Medicare and Medicaid

• Social Security and Medicare

• Unemployment Insurance and Social Security

• Medicaid and Unemployment Insurance

A proportional tax is a tax system where:

• The tax rate increases as income increases.

• The tax rate decreases as income increases.

• The tax rate remains constant regardless of income.

• The tax is only applied to luxury goods.

A progressive tax is a tax system where:

• The tax rate decreases as income increases

• The tax rate remains constant regardless of income

• The tax rate increases as income increases

• The tax rate is the same for all income levels

A regressive tax is:

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

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

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

• A tax that is only applied to luxury goods.

What is meant by the term tax base?

• The total amount of assets or income that can be taxed by a government.

• The rate at which an individual or corporation is taxed.

• The total revenue collected by the government from taxes.

• The legal framework governing taxation in a country.