Exam 12: The Design of the Tax System

Table 12-20 The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the income levels shown. -Refer to Table 12-20. Which tax schedule could be considered a lump-sum tax?

For state and local governments, in 2011, sales taxes and property taxes made up approximately

If tax revenues from a tax on wine, beer, and hard liquor are used to pay for healthcare expenses related to liver damage, the alcohol tax could be justified using the .

Suppose that in 2020 the average citizen's federal tax bill is $11,888 per person, and total federal spending is $13,997 per person. In 2020, the federal government will have

Table 12-10 -Refer to Table 12-10. If Jace has $33,000 in taxable income, his average tax rate is

Table 12-10 -Refer to Table 12-10. If Si has $100,000 in taxable income, his tax liability will be

To fully understand the progressivity of government policies, one should only look at the proportion of total income that individuals pay in taxes each year.

Some colleges charge all students the same "activity fee." Suppose that students differ by how many campus activities they engage in. This charge is most like

Special tax treatment given to specific types of behavior are called

The U.S. tax burden is high compared to many European countries..

Scenario 12-4 A taxpayer faces the following tax rates on her income: 20 percent of the first $40,000 of her income; 30 percent of all her income above $40,000. -Refer to Scenario 12-4. At what level of income would the taxpayer's marginal tax rate be 30 percent and her average tax rate be 25 percent?

In 2011, what were the two largest sources of federal tax revenues, and what were the two largest expenses of the federal government?

If a poor family has three children in public school and a rich family has two children in private school, the ability-to- pay principle would suggest that

Which of the following statements is not correct?

In 2011, which category represented the largest category of spending for the U.S. federal government?

Suppose the government imposes a tax of 20 percent on the first $50,000 of income and 30 percent on all income above $50,000. What is the average tax rate when income is $60,000?

Scenario 12-2 Suppose that Bob places a value of $10 on a movie ticket and that Lisa places a value of $7 on a movie ticket. In addition, suppose the price of a movie ticket is $5. -Refer to Scenario 12-2. Suppose the government levies a tax of $3 on a movie ticket and that, as a result, the price of a movie ticket increases to $8. What is the deadweight loss from the tax?

Table 12-5 -Refer to Table 12-5. What is the marginal tax rate for a person who makes $60,000?

Vertical equity states that taxpayers with a greater ability to pay taxes should

In 2011, the average American paid approximately how much to the federal government in taxes?