Taxation Quiz

A _____ tax imposes a higher tax rate on those with higher incomes.

• direct

• proportional

• regressive

• progressive

Gross pay minus deductions is _____.

• net pay

• gross income

• overtime pay

• bonus pay

Payment for work that is calculated on an hourly basis is called a(n) _____.

• bonus

• salary

• wage

• unearned income

What is the last day to file a federal income tax return?

• April 15

• April 25

• August 15

• August 25

Which of the following is not a reason legislators raise or lower taxes?

• a. to address social challenges

• b. to stabilize the economy

• c. to influence taxpayer behavior

• d. to punish groups of people

What is it called when the federal government spends more money than it collects?

• a. deficit spending

• b. mandatory spending

• c. discretionary spending

• d. taxable spending

Which federal program pays for certain health-care expenses for older citizens and others with disabilities?

• a. Social Security

• b. Medicare

• c. Medicaid

• d. VITA Programs

Which of the following is not a benefit category provided by Social Security?

• a. disability benefits

• b. divorced people's benefits

• c. survivor's benefits

• d. low-income benefits

Match the following terms with their definitions. Total income before payroll deductions.

• gross pay

• net pay

• taxable income

• disposable income

How is net pay calculated?

• By adding gross pay and deductions

• By subtracting deductions from gross pay

• By multiplying gross pay by tax rate

• By dividing gross pay by number of hours worked