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WorksheetsStandard 2: Taxes
Total questions: 20
Worksheet time: 20mins
The division of the United States Treasury that is charged with the responsibility of maintaining confidence in and managing the federal tax system is called the
Congress.
Internal Revenue Service.
President.
Department of Justice.
Although people in the United States are required to pay taxes, our tax system depends on a principle called
moral virtue.
ethics.
voluntary compliance.
civic duty.
If you make an honest, accidental mistake when filing your taxes, you
can be tried in court and fined.
will never have any fine or penalty for the mistake.
may have a fine or penalty for the mistake.
may be tried in court, and, if found guilty, jailed.
While many Americans complain about taxes, most people in the United States
fail to pay their personal income taxes each year.
pay a lot of money to figure out ways to get out of paying taxes.
cheat on their income taxes, leaving others to pay more than their share of taxes each year.
believe it is their civic duty to pay their taxes and be honest with the government.
Which of the following statements is TRUE?
Individuals do not have to pay taxes if they believe it is a violation of their religious beliefs.
Everyone who receives a paycheck is required to submit a tax return to the IRS by April 15.
Taxes paid provide services that impact only quality of life in the United States, not the standard of living.
Many people are able to cheat the government and avoid paying taxes by using phony deductions or failing to report their income appropriately.
Which of the following is an example of public goods or services paid for by taxes?
Shopping Malls
Resturaunts
Churches
Roads and Highways
If people in Group A are taxed MORE than people in Group B, it may
increase Group A’s incentive to earn more money.
increase the Group B’s incentive to earn more money.
have no effect on either group’s incentive to earn more money.
decrease Group A’s incentive to earn more money.
A “free rider” is defined as a
person who sneaks onto trains without paying taxes.
person who benefits from services without paying for them.
person who pays extra tax so someone else does not have to pay.
voucher that poor people receive to help them with transportation costs.
Which of the following taxes is regressive?
sales tax
Federal income tax
Oklahoma state income tax
a tax where the amount paid depends on income
A tax paid on certain goods and services at the point in time they are purchased is
a progressive tax.
a sales tax.
an income tax.
a fair tax.
The gasoline tax is an example of the ____________________ principle.
ability to pay
free rider
progressive tax
benefit received
Quality of life is
the overall enjoyment of life and sense of well being.
a set of principles or beliefs that govern an individual’s actions.
the quality and quantity of goods and services available to people, and the way these goods and services are distributed within a country.
the amount of income you earn.
All of the statements below are good ways to avoid a tax audit, EXCEPT
filing your income tax on time.
under-reporting your tax income.
being honest with the information you report.
keeping good records of your income and expense.
The overall goal of tax policy in the United States is to ensure that taxes are
fair.
equal.
illegal.
low.
The federal income tax has different tax bracket percentages and income levels for single individuals. As a result of this practice,
the federal income tax is a regressive tax.
highest percentage rate.
you pay different percentages of taxes as your income increases.
the federal income tax is based on the benefits-received theory of taxation.
The ability to pay tax principle says that
the proportion of income paid in taxes increases as income increases.
the proportion of income paid in taxes decreases as income decreases.
people who use certain public goods and services should pay for them with taxes.
people who can afford to pay taxes should pay more than those with limited ability to pay.
Which of the following statements is FALSE?
Everyone benefits in some way from the public goods and services provided with our tax dollars.
We should continue paying taxes as long as the benefits to society are greater than the costs.
The tax system in the United States is a combination of different tax theories and different kinds of taxes.
Public goods and services provide benefits to only one person at a time; therefore, they should available only to those who pay for them.
Oklahoma has a _______________ income tax system.
regressive.
progressive.
passive.
outdated.
Employees receive a form from their employers each year with information required for their federal income taxes. This form is called a
NP4.
CPD2.
WD40.
W2.
The PRIMARY purpose of taxes is to
allow people to have free goods and services.
take money from one group and give it to another.
provide goods and services that are too expensive for people to buy.
provide services that improve the quality of life in the United States.
