What is a defining characteristic of a progressive tax system?
a. The tax rate decreases as income increases.
b. A higher burden is placed on the wealthy.
c. The funds are typically used only during emergencies.
d. The sales tax does not apply to all purchases.
Q. 2The Property Tax Relief Fund receives its monies from which of the following sources?
a. dividends from investments
b. statewide property tax
c. franchise tax
d. state and employee contributions
Q. 3Manor High is a public educational institution. Its annual expenditure is 5 million. It receives money from an independent state fund fuelled by stock and bond investments and also by the motor fuels tax.
Which of the following state funds is best exemplified in this scenario?
a. the Rainy Day Fund
b. the Property Tax Relief Fund
c. the Permanent School Fund
d. the Permanent University Fund
Q. 4Which statement is true about the Economic Stabilization Fund?
a. The primary source of revenue for this fund is the cigarette tax.
b. It needs two-thirds votes in each house to appropriate fund money during economic emergencies.
c. During economic emergencies, it takes a separate 60 percent vote from both the House and the senate to tap the funds.
d. It primarily funds wildlife parks.
Q. 5How does the Permanent University Fund meet its funding goals?
a. It receives a cut of the gambling and lottery tax.
b. It invests its assets in stocks, bonds, and other financial holdings.
c. It receives monies from the Texas education tax.
d. It is funded through the generosity of donors.
Q. 6Which fund receives money from oil and natural gas collections and is used only during economic emergencies?
a. Rainy Day Fund
b. Permanent School Fund
c. Texas Mobility Fund
d. State Highway Fund
Q. 7Which education system is served by the Permanent University Fund?
a. all Texas secondary public schools
b. universities that meet specific minority enrollment guidelines
c. liberal arts universities in Texas
d. schools within the University of Texas and Texas A&M systems
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