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Types of Taxes

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

What is a sales tax?

a)

A tax imposed on the loaning of goods and services.

b)

A tax imposed on the income of individuals.

c)

A tax imposed on the sale of goods and services.

d)

A tax imposed on the import of goods and services.

2.

Which type of tax is levied on specific goods like alcohol, tobacco, or gasoline?

a)

excise tax

b)

property tax

c)

income tax

d)

sales tax

3.

What is a progressive tax?

a)

A tax system in which the tax rate decreases as the taxable income increases.

b)

A tax system in which the tax rate remains constant regardless of the taxable income.

c)

A tax system in which the tax rate increases as the taxable income increases.

d)

A tax system in which the tax rate is determined by the taxpayer's age.

4.

Which type of tax is based on the value of goods or services purchased?

a)

income tax

b)

property tax

c)

excise tax

d)

sales tax

5.

Which type of tax takes a larger percentage of income from low-income earners than from high-income earners?

a)

Regressive tax

b)

Progressive tax

c)

Flat tax

d)

Sales tax

6.

What is a proportional tax?

a)

A proportional tax is a tax system where the tax rate fluctuates with interest rates.

b)

A proportional tax is a tax system where the tax rate remains the same regardless of income.

c)

A proportional tax is a tax system where the tax rate decreases as the taxable base increases.

d)

A proportional tax is a tax system where the tax rate increases as the taxable base increases.

7.

Which type of tax increases as the income or wealth of the taxpayer increases?

a)

Regressive tax

b)

Proportional tax

c)

Flat tax

d)

Progressive tax

8.

Which type of tax does everyone pay the same tax rate, regardless of their income level?

a)

Regressive tax

b)

Progressive tax

c)

Flat tax

d)

Sales tax

9.

Which type of tax is based on the value of property owned by a person?

a)

Property tax

b)

Income tax

c)

Sales tax

d)

Excise tax

10.

What is a progressive tax?

a)

A tax that takes a larger percentage from low-income people.

b)

A tax that takes the same percentage from everyone, regardless of income.

c)

A tax that takes a larger percentage from high-income people.

d)

A tax that is only applied to luxury goods and services.

11.

What are the two principles of taxation?

a)

Ability to Pay Principle

b)

Ability to Levy Principle

c)

Ability to Administer Principle

d)

Benefit Principle

12.

Which factors makes a tax effective?

a)

Simplicity, Efficiency, and Equity

b)

Simplicity, Equestrian, and Efficiency

c)

Equity, Simplicity, and Reliability

d)

Reliability, Functionality, and Lucrative

13.

What is property tax?

a)

A tax imposed on the sale of goods and services.

b)

A tax imposed on the ownership of property, usually real estate.

c)

A tax imposed on the income of individuals.

d)

A tax imposed on the import of goods and services.

14.

Of the following, which are considered "Excise" or Sin Taxes?

a)

Alcohol Tax

b)

Heroin Tax

c)

Tobacco Tax

d)

Gasoline Tax

15.

What is the name of the revenue that states receive from the federal government?

a)

Tax Revenue

b)

Intragovernmental Revenue

c)

Intergovernmental Revenue

d)

States do not receive revenue from the federal government

16.

What does FICA stand for?

a)

Federal Interstate Commerce Act

b)

Federal Interstate Contributions Act

c)

Federal Insecurities Corrections Act

d)

Federal Insurance Contributions Act

17.

Which tax is proportional at first then becomes regressive once the cap is reached?

a)

Estate Tax

b)

Social Security

c)

Medicare

d)

Corporate Income Tax

18.

What do local governments spend most of their money on?

a)

Education

b)

Utilities

c)

Police Protection

d)

Fire Protection

19.

What is the largest source of revenue for the federal government?

a)

Social Security Tax

b)

Medicare Tax

c)

Individual Income Tax

d)

Property Tax

20.

What is the largest source of revenue for local governments?

a)

Intergovernmental Revenue

b)

Intragovernmental Revenue

c)

Property Tax

d)

Corporate Income Tax