Question : 11) Tax Payer Income Income Taxes Owed Angela : 1241401

 

11)

Tax Payer

Income

Income Taxes Owed

Angela

$10,000  

$1,000

Bob

$100,000

$10,000

Carmen

$1,000,000

$100,000

 

The table above shows three taxpayers, their incomes, and taxes owed. The data reflect a ________ income tax system because people pay ________.

A) regressive; a larger portion of their income as taxes

B) progressive; a smaller portion of their income as taxes

C) proportional; the same proportion of their income as taxes regardless of their level of income.

D) flat rate; the same amount of taxes regardless of their income

E) negative; a smaller portion of their income as taxes

12) Which of the following is (are) an example of an income maintenance program?

i.unemployment compensation

ii.welfare programs

iii.Social Security programs

A) i and iii

B) ii and iii

C) iii only

D) i and ii

E) i, ii, and iii

 

13) Three types of income maintenance programs used by the United States are

A) income taxes, Social Security, and the earned income tax credit.

B) Social Security programs, OASDHI, and income taxes.

C) Social Security programs, unemployment compensation, and welfare programs.

D) welfare programs, income taxes, and the earned income tax credit.

E) income taxes, Social Security, and subsidized services.

 

14) Social Security is a ________ program paid for by ________.

A) compulsory; payroll taxes

B) compulsory; government money

C) voluntary; payroll taxes

D) voluntary; income taxes

E) compulsory; voluntary taxes on income

15) Social Security and unemployment compensation

A) are paid only to the poorest households.

B) are both funded by income taxes.

C) are distributed by individual states.

D) both redistribute income.

E) make the distribution of income less equal.

 

16) ________ is a component of welfare programs.

A) A progressive income tax

B) Unemployment compensation

C) Medicaid

D) Social Security payroll taxes

E) The negative income tax

 

17) Looking at the results of government income redistribution programs, we find that the income received by the

A) lowest 20 percent of households is almost unchanged because most don’t work.

B) highest 20 percent is left unaffected because they are able to shelter income from taxes.

C) lowest 20 percent increases, and the income received by the highest 20 percent decreases.

D) lowest 20 percent increases somewhat, but the income received by the next 20 percent increases the most.

E) lowest 20 percent decreases because of government taxes, and the income received by the highest 20 percent increases because of government subsidies.

18) Passing the TANF welfare program has

A) made welfare programs more open-ended entitlement programs.

B) limited assistance to five years.

C) eliminated work and public service requirements.

D) hurt economic incentives to work.

E) made it into a negative income tax program.

 

19) A negative income tax is a system that, in part,

A) taxes lower-income households at a higher rate.

B) taxes higher-income households at a higher rate.

C) guarantees a minimum level of income for all households.

D) gives money from taxes paid by the poor to wealthy investors.

E) guarantees a minimum level of taxation for all households.

 

20) Which of the following characterizes the negative income tax concept?

A) It is a flat tax that lower-income households do not pay.

B) It is a progressive tax structure with enough deductions to provide refunds to some.

C) It is a regressive tax with low-income earners getting a refund back when taxes are filed.

D) It is a guaranteed annual income with earned incomes taxed at a flat rate.

E) It is an income tax that eliminates all the inefficiency that occurs with the current tax system.