Question : 44) Since lower-income people spend a larger proportion of their : 1388021

 

 

44) Since lower-income people spend a larger proportion of their incomes on groceries than do higher-income people, if grocery stores were required by law to charge a 10-cent fee for disposable bags, this fee could be considered

A) a proportional tax.

B) a progressive tax.

C) a regressive tax.

D) an income tax.

 

 

45) In reference to the federal income tax system, a tax bracket is

A) the estimated amount of federal income tax firms withhold from their employees’ paychecks.

B) the formula the federal government uses to determine the dollar amount of the personal exemption and the amounts taxpayers are allowed for deductions from their incomes.

C) used to determine the average tax rate.

D) the income range within which a tax rate applies.

 

46) Which of the following is an example of a federal mandate?

A) an excise tax

B) the Medicaid program

C) the personal tax exemption

D) the Food and Drug Administration (FDA)

 

 

47) A proportional tax is a tax for which people with lower incomes

A) pay a higher percentage of their incomes in tax than do people with higher incomes.

B) pay a lower percentage of their incomes in tax than do people with higher incomes.

C) pay the same percentage of their incomes in tax as do people with higher incomes.

D) pay the same amount of taxes as people with higher incomes pay.

 

 

48) In the United States, taxpayers are allowed to exclude from taxation a certain amount of income, called

A) the personal income exclusion.

B) the income allowance.

C) the income tax credit.

D) the personal exemption.

 

Table 18-7

 

Taxable Income

Tax Payments

$10,000

$1,000

  12,000

  1,240

  16,000

  1,780

  22,000

  2,740

 

Table 18-7 shows the amount of taxes paid on various levels of income.

 

49) Refer to Table 18-7.  The tax system is

A) progressive throughout all levels of income.

B) proportional throughout all levels of income.

C) regressive throughout all levels of income.

D) progressive between $10,000 and $12,000 of income and regressive between $16,000 and $22,000.

 

 

50) According to projections for 2013 by the Tax Policy Center, the 20 percent of U.S. taxpayers who make the highest incomes

A) use loopholes and tax exemptions to reduce their share of federal income taxes to less than 20 percent.

B) pay almost 68 percent of federal income taxes.

C) pay about 92 percent of federal income taxes but only about 20 percent of Social Security and Medicare payroll taxes.

D) pay more in excise and other taxes than they pay in Social Security and Medicare payroll taxes.

 

Table 18-8

 

Taxable Income

Tax Payments

$10,000

$1,000

  12,000

  1,080

  16,000

  1,360

  22,000

  1,760

 

Table 18-8 shows the amount of taxes paid on various levels of income.

 

51) Refer to Table 18-8.  The tax system is

A) progressive throughout all levels of income.

B) proportional throughout all levels of income.

C) regressive throughout all levels of income.

D) progressive between $10,000 and $12,000 of income and regressive between $12,000 and $22,000.

 

 

52) In the United States, the federal income tax is an example of a

A) progressive tax.

B) regressive tax.

C) proportional tax.

D) flat tax.

 

 

53) The average tax rate is calculated as

A) total income divided by the total tax paid.

B) the change in total tax paid divided by the change in income.

C) total tax paid divided by total income.

D) the change in income divided by the change in total tax paid.