WorksheetsTaxes Bell Ringer 1
Total questions: 6
Worksheet time: 3mins
Which of the following best describes a progressive tax system?
All taxpayers pay the same percentage of their income as tax
High-income earners pay a smaller percentage of their income than low-income earners
High-income earners pay a larger percentage of their income than low-income earners
The tax rate decreases as the taxpayer's income increases
Each of the following statements about marginal tax rates is true EXCEPT…
Marginal tax rates apply to different portions of income in a progressive tax system
Marginal tax rates increase as the taxpayer's income increases in a progressive system
Marginal tax rates are applied to an individual's total income, not just portions of it
Marginal tax rates dictate the tax rate on each additional dollar of income
Which statement best describes the difference between gross income and taxable income?
Gross income includes all deductions, while taxable income is income before any deductions
They are the same; both represent the total income an individual earns in a year
Taxable income is always higher than gross income
Gross income is the total income earned, while taxable income is gross income minus deductions and exemptions
Which of the following are two mandatory categories of government spending that are paid for by FICA taxes?
Military and Education
Health and Veterans’ Benefits
Housing and Transportation
Social Security and Medicare
On a paystub, the amount of money that is left after withholdings is known as…
Gross pay
Net pay
Annual earnings
Wages and tips
Which statement best describes discretionary government spending?
A fixed amount of money spent on the same categories every year
The money used to pay for Social Security and Medicare
A changing amount of money spent on different categories each year
Money that you determine how it is spent by the government when you submit your taxes
