Taxes and Income Levels

What type of tax system does the U.S. primarily use?

• Proportional

• Flat

• Progressive

• Regressive

Answer explanation

The U.S. primarily uses a Progressive tax system where tax rates increase as income increases, making it the correct choice.

How many marginal tax brackets are there in the U.S. as of 2019?

• 7

• 5

• 8

• 6

Answer explanation

There are 7 marginal tax brackets in the U.S. as of 2019, making the correct answer choice 7.

What percentage of Americans pay no federal income taxes?

• 50%

• 30%

• 44%

• 60%

Answer explanation

44% is the correct choice as it represents the percentage of Americans who pay no federal income taxes.

Which tax system impacts lower paid workers more severely?

• Progressive

• Flat

• Proportional

• Regressive

Answer explanation

The correct choice is 'Regressive' because this tax system impacts lower paid workers more severely by taking a higher percentage of income from those with lower incomes.

What was the purpose of the 16th Amendment in 1913?

• To introduce sales tax

• To allow Federal government to tax income in every state

• To repeal the income tax

• To decrease the tax rates

Answer explanation

The purpose of the 16th Amendment in 1913 was to allow the Federal government to tax income in every state.

Which statement best describes a proportional tax system?

• Lower earners pay a higher percentage of their income

• Everyone pays the same percentage of their income

• Tax rate decreases as income increases

• Tax rate increases as income increases

Answer explanation

A proportional tax system means everyone pays the same percentage of their income, regardless of their earnings. This choice accurately describes the concept.

Match the following

• tax on money earned from a job

• Income Tax

• Tax paid on property you own

• Sales Tax

• Tax paid on items you buy

• Property Tax

The ​ (a)   is the basic guidelines and rules for our government.

• U.S. Constitution

• Judicial

• Bill of Rights

• Executive

Answer explanation

The U.S. Constitution is the basic guidelines and rules for our government, making it the correct choice.

This is the social & political commitment & freedom to start their own businesses & compete

• free enterprise system
• free response system
• free travel system
• freedom of choice

What is capitalism?

• government control of production and goods
• an economic system; private control of production and goods for profit

• employee control of production, goods, and profit
• international control of production and goods for profit