One important governmental justification for progressive taxation is
A) assisting small businesses.
B) promoting equality.
C) giving corporations more incentive to hire new employees.
D) allowing people to keep more of the income that they earn.
E) enhancing national security by enhancing federal revenues.
The total federal tax burden on U.S. citizens __________ the 1950s.
A) has increased slightly since
B) has increased dramatically since
C) has stayed about the same since
D) has actually decreased since
E) is impossible to directly compare to
A tax where the rich pay proportionately higher taxes as a share of their income than the poor is also known as a(n)
A) regressive tax.
B) payroll tax.
C) flat tax.
D) progressive tax.
E) decoupled tax.
A tax allocated based on a person's ability to pay, rather than, for example, requiring everyone to pay an equal percentage of their income, is known as a __________ tax.
A) progressive
B) mandatory
C) discretionary
D) regressive
E) flat
President Reagan backed a sweeping tax reform that reduced the number of brackets. By eliminating many tax brackets, the new tax policy approached the idea of a flat tax which means that
A) the wealthy pay a lower tax.
B) the poor pay a lower tax.
C) the wealthy pay a higher tax.
D) everyone pays at the same rate.
E) the poor pay a higher tax.
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