Taxes and Spending

In this tax structure you pay a greater percentage of the value of the tax base as that value increases. Our Federal Income Tax is paid in this manner.

• Progressive Tax

• Regressive Tax

• Proportional or Flat Tax

• Excise Tax

In the US, Taxes are levied (imposed & collected) by

• Businesses that need profits

• Parents

• Foreign countries

• Federal, State, and Local Governments

In this tax structure a single tax rate (percentage) is applied to all levels of income. Some states use this as structure for State Income tax, and our FICA taxes are collected in this way.

• Progressive Tax

• Regressive Tax

• Proportional or Flat Tax

• Excise Tax

In this tax structure a single tax rate (percentage) is applied to all levels of income, however, a smaller percentage of income is used to cover the tax as your income increases. An example of this would be sales tax or even tolls for roads/bridges.

• Progressive Tax

• Regressive Tax

• Proportional or Flat Tax

• Excise Tax

Coach Russo pays a tax each year of $3500 that is based off the value of his family's home. Which type of tax is he paying?

• Payroll Tax

• Income Tax

• Sales Tax

• Property Tax

Where does the largest share of federal tax revenue come from?

• Corporate taxes

• General sales taxes

• Individual income taxes

• Property taxes

When you purchase a new pair of sneakers valued at $150, but are required to pay $158.50 at the register because there is a tax on the item, which type of tax have you paid?

• Corporate taxes

• General sales taxes

• Individual income taxes

• Property taxes

Which of the following refers to an excise tax that is meant to discourage the purchase of goods that do not promote consumers’ health?

• Exercise tax

• Luxury tax

• Sin tax

• User tax

Which of the following is the single largest federal expenditure?

• national defense

• Social Security

• interest

• Medicare

Elementary schools, police departments, and electrical service are typically paid for by

• the federal government

• state governments

• local government

• natural monopolies