Question 1

​The largest source of federal revenue in the United States is:

Accepted Answer

A)  ​Social insurance tax
B)  the corporate income tax
C)  ​the individual income tax
D)  Foreign aid to the U.S.E) A) and B)
F) All of the above

Question 2

The argument that each person should pay taxes according to how well the individual can shoulder the burden is called

Accepted Answer

A)  the ability-to-pay principle.
B)  the equity principle.
C)  the benefits principle.
D)  regressive.E) A) and B)
F) B) and D)

Question 3

Suppose that the government collected taxes in the following fashion: people who earn less than $50,000 pay 25 percent in taxes, people who earn between $50,000 and $100,000 pay 35 percent in taxes, people who earn between $100,000 and $200,000 pay 30 percent in taxes, and people who earn more than $200,000 pay 28 percent in taxes. Which of the following statements is correct?

Accepted Answer

A)  The tax system is proportional for income levels less than $50,000 and regressive for income levels above $50,000.
B)  The tax system is regressive for income levels less than $100,000 and progressive for income levels above $100,000.
C)  The tax system is progressive for income levels less than $100,000 and regressive for income levels above $100,000.
D)  The tax system is progressive for income levels less than $50,000 and proportional for income levels above $100,000.E) None of the above
F) All of the above

Exam 12: The Design of the Tax System

Correct Answer
verified

The largest source of federal revenue in the United States is:

Correct Answer
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The argument that each person should pay taxes according to how well the individual can shoulder the burden is called

Correct Answer
verified

Exam 12: The Design of the Tax System

Correct AnswerverifiedShow Answer

​The largest source of federal revenue in the United States is:

Correct AnswerverifiedShow Answer

The argument that each person should pay taxes according to how well the individual can shoulder the burden is called

Correct AnswerverifiedShow Answer

Correct Answer
verified

The largest source of federal revenue in the United States is:

Correct Answer
verified

Correct Answer
verified