Funding Government Programs

What is the primary way that the government collects money?

• Loans

• Taxation

• Donations

• Investments

Citizens of the US authorize the government to raise money through _______.

• taxes

• donations

• lotteries

• foreign aid

Without ______, or income from taxes, government would not be able to provide goods and services.

• revenue

• expenses

• loans

• debts

What does the 16th Amendment give Congress the power to do?

• Levy an income tax

• Declare war

• Regulate commerce

• Amend the Constitution

Fill in the blank: The power to tax is limited through the _________.

• Constitution

• Bill of Rights

• Declaration of Independence

• Federalist Papers

Which of the following is a limit on the power to tax according to the Constitution?

• A) Taxes must be the same in every state

• B) The government may tax exports

• C) Taxes can be used for any purpose

• D) Taxes are only for state use

What is a proportional tax?

• A tax where the percentage of income paid in taxes increases with income levels.

• A tax where the percentage of income paid in taxes decreases with income levels.

• A tax where the percentage of income paid in taxes remains the same for all income levels.

• A tax that is only applied to luxury goods.

A progressive tax is a tax system where:

• The tax rate decreases as income increases.

• The tax rate is the same for all income levels.

• The tax rate increases as income increases.

• There is no tax on income.

What is a regressive tax?

• A tax where the percentage of income paid increases as income increases.

• A tax where the percentage of income paid decreases as income increases.

• A tax where the percentage of income paid remains constant regardless of income.

What is the role of the IRS in collecting taxes?

• To provide financial advice to taxpayers

• To collect and enforce tax laws

• To create tax laws

• To audit only large corporations