Unit 4 Test

First Name

Last Name

Class Period #

• Period 2
• Period 7

What branch of the federal government has the power to tax?

• A. The Executive Branch (The President)
• B. The Legislative Branch (Congress)
• C. The Judicial Branch (The Supreme Court)
• D. The Department of Commerce & Labor

What MUST taxes be used for? (Select all the apply)

• A. The common defense
• B. Individual interests
• C. The general welfare.
• D. Corporate welfare

What is the type of tax structure that increases the amount that people pay as they earn more income?

• A. Proportional Tax Structure
• B. Regressive Tax Structure
• C. Progressive Tax Structure
• D. Unspecified tax

Which Amendment created income tax?

• A. 19th Amendment
• B. 18th Amendment
• C. 17th Amendment
• D. 16th Amendment

What is Tax Withholding?

• A. Where you have to put aside money from your paycheck on your own each month for taxes.
• B. Where your place of employment (job) takes out taxes before you receive it.
• C. Where your last check of the year all goes to taxes.
• D. None of the above.

True or False: A donation to a charity is classified as a tax deduction.

• A. True
• B. False

Why does the government put a behavior (sin tax)/luxury tax on some items?

• A. The government wants to encourage you to buy those items.
• B. The government wants to discourage you from buying those items.
• C. The government really doesn't care if you buy the items, it knows you will pay the extra tax on it, regardless.