Why does the federal government collect income taxes in installments rather than waiting until the end of the year? |
It is more convenient for the government and taxpayers to collect in installments |
What happens to the percentage of an income that is taxed when income rises and the tax is a proportional one? |
The percentage of tax stays the same |
Approximately what percentage of the national budget is spent on defense? |
15% |
What is a "means-tested" program? |
one for which those with higher incomes receive lower benefits or no benefits at all |
What is the difference between and estate tax and a gift tax |
An estate tax is a tax on the money and property of someone who has died; a gift tax is a tax on money or property given from one living person to another |
What gives the U.S government the right to collect taxes? |
The US Constitution |
What is the major source of revenue for most state governments? |
Sales & individual income taxes |
For which expense do state governments provide financial help to their local governments? |
public school systems |
Why are Social Security and Medicare spending expected to increase further in the near future? |
The baby boomer generation will qualify for both programs |
What is the main purpose of federal taxes on tobacco and alcohol products? |
to discourage the use of these products |
How do most states finance their capital budget? |
… |
On which of the following goods or services might a tax increase be hardest to pass on to consumers? |
automatic car washes |
What is the reason the government has only limited control of its spending? |
When criteria have been set for a program there is no control of how many people will qualify |
How is the federal income tax a progressive tax? |
The higher income a person has, the higher the percentage that person pays in taxes |
How does the concept of a balanced budget apply to state government |
Only the operating budget must be balanced |
What is the largest category of federal spending? |
Social Security |
What determines the incidence of a tax? |
The elasticity of demand of the product taxed |
How much of the federal government’s income comes from individual income tax? |
47% |
How would you describe a tax that assessed according to the benefits-received principle ? |
Those who receive the benefits the tax provides are the people who pay the tax |
What is the difference between Medicare and Medicaid? |
Medicare is for people over the age of 65, whereas Medicaid is for low income families |
What does the "equity" of a tax mean? |
The tax is fairly assessed |
What are the main sources of revenue for local governments? |
property taxes |
Ch 14 Section Quiz
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