Exam 17: Taxation and Resource Allocation

Horizontal equity is a difficult concept to implement because

An excise tax

The average tax rate is

A tax that reduces economic efficiency is always bad policy.

If two families are equally situated except that one rents and the other owns their home, the existing tax system will lead to

When a tax is imposed on an item, it can generally be said that the incidence of the tax is

One major problem with Social Security is that it is a "pay as you go" system.

Which of the following government entities relies most heavily on sales taxes?

Existing loopholes erode the progressivity of the U.S.tax system.

On necessities, more of the incidence of tax is

Under a regressive tax, the fraction of income paid in taxes

The most important indirect taxes in the United States are

Tax deductions were significantly ____ under the Tax Reform Act of 1986.

In England the Thatcher government substituted a "poll tax" for the local property tax.People took strong exception to the tax, which is basically a head or "lump sum" tax.The principle of taxation such a tax violates is called

The payroll tax system is a proportional tax for all income earners.

Fiscal federalism refers to

Explain why some argue that income tax loopholes primarily benefit the rich.

One major tax loophole intended to help state & local governments raise funds is:

Americans generally pay

A tax loophole is