Question 1

Under a flat tax

Accepted Answer

A)  all tax breaks would be eliminated, and everyone would pay a flat tax of about 9 percent on income. 
B)  some tax breaks would remain, and everyone would pay a flat tax of about 19 percent on income. 
C)  some tax breaks would remain, and everyone would pay a flat tax of 9 percent. 
D)  all tax breaks would be eliminated, and everyone would pay a flat tax of about 19 percent. 
A)  all tax breaks would be eliminated, and everyone would pay a flat tax of about 9 percent on income. 
B)  some tax breaks would remain, and everyone would pay a flat tax of about 19 percent on income. 
C)  some tax breaks would remain, and everyone would pay a flat tax of 9 percent. 
D)  all tax breaks would be eliminated, and everyone would pay a flat tax of about 19 percent. D

Question 2

More than half of personal income is not taxed.

Accepted Answer

A) True 
 B)False  True

Question 3

Estate taxes are taxes on

Accepted Answer

A)  large homes worth over $750,000. 
B)  holdings of land over 5,000 acres. 
C)  property left to heirs upon your death. 
D)  profits from e-commerce paid to state governments. 
A)  large homes worth over $750,000. 
B)  holdings of land over 5,000 acres. 
C)  property left to heirs upon your death. 
D)  profits from e-commerce paid to state governments. C

Question 4

A national sales tax is likely to be

Accepted Answer

A)  regressive. 
B)  proportional. 
C)  progressive. 
D)  subjective. 
A)  regressive. 
B)  proportional. 
C)  progressive. 
D)  subjective.

Question 5

A flat tax is also

Accepted Answer

A)  an excise tax. 
B)  proportional. 
C)  regressive. 
D)  progressive 
A)  an excise tax. 
B)  proportional. 
C)  regressive. 
D)  progressive

Question 6

The provisions of the tax package passed in 2010 will expire in 2012.

Accepted Answer

A) True 
 B)False

Question 7

The idea of a national sales tax would

Accepted Answer

A)  encourage people to borrow to buy goods. 
B)  reduce the cost of tax collections. 
C)  be very good for people wishing to buy high-value property (large homes or expensive cars). 
D)  encourage consumption rather than saving. 
A)  encourage people to borrow to buy goods. 
B)  reduce the cost of tax collections. 
C)  be very good for people wishing to buy high-value property (large homes or expensive cars). 
D)  encourage consumption rather than saving.

Question 8

The Tax Reform Act of 1986 sharply reduced taxes in the upper bracket.

Accepted Answer

A) True 
 B)False

Question 9

The greatest barrier to simplification of the tax code come from

Accepted Answer

A)  Congress. 
B)  the Supreme Court. 
C)  the Federal Reserve Board. 
D)  interest groups. 
A)  Congress. 
B)  the Supreme Court. 
C)  the Federal Reserve Board. 
D)  interest groups.

Question 10

Maximum income tax rates

Accepted Answer

A)  went up during the Reagan administration. 
B)  went up during the Kennedy administration. 
C)  went down during the George H. W. Bush administration. 
D)  went up during the Clinton administration. 
A)  went up during the Reagan administration. 
B)  went up during the Kennedy administration. 
C)  went down during the George H. W. Bush administration. 
D)  went up during the Clinton administration.

Question 11

The top source of income for the federal government is the

Accepted Answer

A)  corporate income tax. 
B)  individual income tax. 
C)  Social Security tax. 
D)  joint tax. 
A)  corporate income tax. 
B)  individual income tax. 
C)  Social Security tax. 
D)  joint tax.

Question 12

George W.Bush moved to

Accepted Answer

A)  lower the top marginal tax rate. 
B)  raise the top marginal tax rate. 
C)  raise the top marginal rate but lower the capital gains tax. 
D)  lower the top marginal rate and lower the capital gains tax. 
A)  lower the top marginal tax rate. 
B)  raise the top marginal tax rate. 
C)  raise the top marginal rate but lower the capital gains tax. 
D)  lower the top marginal rate and lower the capital gains tax.

Question 13

An income tax system that takes the same percentage of tax for all income levels is

Accepted Answer

A)  regressive. 
B)  progressive. 
C)  proportional. 
D)  highly regressive. 
A)  regressive. 
B)  progressive. 
C)  proportional. 
D)  highly regressive.

Question 14

The lower 50 percent of income tax payers collectively pay about how much of the nation's tax bill?

Accepted Answer

A)  1 percent 
B)  3 percent 
C)  14 percent 
D)  50 percent 
A)  1 percent 
B)  3 percent 
C)  14 percent 
D)  50 percent

Question 15

A sales tax would likely encourage savings and discourage spending.

Accepted Answer

A) True 
 B)False

Question 16

According to the Laffer Curve, higher taxes result in economic decline.

Accepted Answer

A) True 
 B)False

Question 17

Pluralism would most likely be associated with

Accepted Answer

A)  public-choice theory. 
B)  systems analysis. 
C)  interest-group theory. 
D)  legal analysis. 
A)  public-choice theory. 
B)  systems analysis. 
C)  interest-group theory. 
D)  legal analysis.

Question 18

Under George W.Bush,

Accepted Answer

A)  the "marriage penalty" tax went up, but taxes on stock dividends were lowered. 
B)  the "marriage penalty" was eliminated, but taxes on dividends went up. 
C)  the "marriage penalty" was eliminated, and the stock dividend tax went down. 
D)  the "marriage penalty" tax went down, but the taxes on stock dividends went up. 
A)  the "marriage penalty" tax went up, but taxes on stock dividends were lowered. 
B)  the "marriage penalty" was eliminated, but taxes on dividends went up. 
C)  the "marriage penalty" was eliminated, and the stock dividend tax went down. 
D)  the "marriage penalty" tax went down, but the taxes on stock dividends went up.

Question 19

Social Security is paid for as an income tax deduction.

Accepted Answer

A) True 
 B)False

Question 20

If you made a profit on the sale of a home or stock, you might have to pay a tax.

Accepted Answer

A)  property 
B)  capital gains 
C)  windfall or marriage penalty 
D)  excise 
A)  property 
B)  capital gains 
C)  windfall or marriage penalty 
D)  excise

Under a flat tax

More than half of personal income is not taxed.

Estate taxes are taxes on

A national sales tax is likely to be

A flat tax is also

The provisions of the tax package passed in 2010 will expire in 2012.

The idea of a national sales tax would

The Tax Reform Act of 1986 sharply reduced taxes in the upper bracket.

The greatest barrier to simplification of the tax code come from

Maximum income tax rates

The top source of income for the federal government is the

George W.Bush moved to

An income tax system that takes the same percentage of tax for all income levels is

The lower 50 percent of income tax payers collectively pay about how much of the nation's tax bill?

A sales tax would likely encourage savings and discourage spending.

According to the Laffer Curve, higher taxes result in economic decline.

Pluralism would most likely be associated with

Under George W.Bush,

Social Security is paid for as an income tax deduction.

If you made a profit on the sale of a home or stock, you might have to pay a tax.

Policy Analysis

Models of Politics

The Policymaking Process

Policy Evaluation

Federalism and State Policies

Criminal Justice

Health and Welfare

Health Care

Education

Economic Policy

International Trade and Immigration

Energy and the Environment

Civil Rights

Defense Policy

Homeland Security

Filters

Exam 11: Tax Policy

Under a flat tax

More than half of personal income is not taxed.

Estate taxes are taxes on

A national sales tax is likely to be

A flat tax is also

The provisions of the tax package passed in 2010 will expire in 2012.

The idea of a national sales tax would

The Tax Reform Act of 1986 sharply reduced taxes in the upper bracket.

The greatest barrier to simplification of the tax code come from

Maximum income tax rates

The top source of income for the federal government is the

George W.Bush moved to

An income tax system that takes the same percentage of tax for all income levels is

The lower 50 percent of income tax payers collectively pay about how much of the nation's tax bill?

A sales tax would likely encourage savings and discourage spending.

According to the Laffer Curve, higher taxes result in economic decline.

Pluralism would most likely be associated with

Under George W.Bush,

Social Security is paid for as an income tax deduction.

If you made a profit on the sale of a home or stock, you might have to pay a tax.

Policy Analysis

Models of Politics

The Policymaking Process

Policy Evaluation

Federalism and State Policies

Criminal Justice

Health and Welfare

Health Care

Education

Economic Policy

International Trade and Immigration

Energy and the Environment

Civil Rights

Defense Policy

Homeland Security

Filters