Tax fairness

What is the main idea behind tax fairness?

• Taxes should only benefit the wealthy.
• Taxes should be avoided whenever possible.
• Taxes should be based on a person's ability to pay.
• Taxes should be equal for everyone regardless of income.

What is a common argument against regressive taxation?

• It is fair because everyone pays the same.
• It disproportionately affects lower-income individuals.
• It encourages spending among the wealthy.
• It simplifies the tax code.

How does the U.S. tax system incorporate both progressive and regressive taxation?

• Only state taxes are regressive.
• Income tax is progressive while FICA tax is regressive.
• All taxes are progressive.
• There is no regressive tax in the U.S.

How do tax loopholes affect tax fairness?

• They simplify the tax code for everyone.
• They can create inequalities in tax burdens.
• They are beneficial for low-income earners.
• They ensure everyone pays the same amount.

What is a potential benefit of a blended taxation system?

• It eliminates all taxes.
• It only benefits the wealthy.
• It balances the needs of society with individual fairness.
• It is easier to understand than other systems.

How does tax fairness relate to an individual's ability to pay?

• It implies that only the wealthy should pay taxes.
• It suggests everyone should pay the same amount.
• It indicates that taxes should be based on wealth and income.
• It means taxes are irrelevant to government services.

Which of the following best describes regressive taxation?

• It is only applied to luxury goods.
• It taxes everyone the same amount regardless of income.
• It is a tax that only affects corporations.
• It taxes higher incomes at higher rates.

Which of the following is an example of a regressive tax?

• Capital gains tax
• Property tax
• Income tax
• Sales tax

Which of the following statements about progressive taxation is accurate?

• It charges a flat rate for all income levels.
• It has rates that increase with higher income levels.
• It is not used in the U.S. tax system.
• It only applies to corporate taxes.

In a progressive tax system, how is the highest tax rate applied?

• To all income earned.
• Only to income exceeding a certain level.
• To everyone equally.
• To corporate profits only.