The consumers who purchase these
goods consume these goods
100
If a city has a regressive tax and a male who makes 100,000 pays $2,000 in regressive taxes, how
much would a woman who makes $60,000 pay in regressive taxes?
$2,000
100
What is voluntary compliance?
A system of compliance that relies on individual citizens to report their income freely and voluntarily, calculate their tax liability correctly, and file a tax return on time
100
Who was social security originally meant for?
Elderly americans
100
Would jewelry be an example of wealth or income?
wealth
200
The idea that when one person consumes a public good, it does not prevent others from also
consuming the good is called ________________________________________
Shared consumption
200
What are two criteria used to measure fairness in taxes?
benefits received and ability to pay.
200
Give an example of a tax credit
child care credit
200
What is the social security Act and why was it needed?
A policy that offers pension to those who retire, so that they'll leave the workforce and open up jobs for younger people... it was needed because of the great depression
200
If after taxes, the amount of money I received for two weeks of work was 1,000 dollars would that be called my Net Pay or my Gross Pay?
net pay
300
Is national security an example of a public or a private good?
What is public
300
What is a regressive tax?
everyone, regardless of income level, pays the same fixed amount
300
What is the pay-as-you- earn system?
employers withhold taxes from every paycheck and send the money to the IRS on the employees behalf
300
What is a tax deduction
amount often personal or business expense that reduces income subject to tax
300
Is a savings account an example of wealth or income?
wealth
400
What is a positive externality? Give an example
benefits enjoyed by someone who does not produce or pay to consume a product.
An example of a positive externality is elementary education, because society as a whole benefits when others can read and write.
400
Why are proportional taxes considered unfair?
large portion of income is taken from those with lower incomes
400
What are some things taken out of your gross pay?
medicare, health insurance, federal tax, FICA etc.
400
What is a progressive tax?
Tax that takes a larger percentage of income from high income groups than from low income groups
400
Two households who earn the same income pay the same amount of taxes. This is an example of?
horizontal equity
500
What are negative externalities. Give an example
costs paid by someone who does not produce or pay to consume a product. An example of a negative externality is air pollution caused by cigarette smoking: Because others suffer from the smoke, the government may
pass laws preventing smoking in certain places.
500
What are some examples of user fees
Fees for business or professional licenses
• Fees for hunting and fishing licenses
Tolls for roads or bridges
• Fees for parking
• Fees for entrance to museums, parks, and monuments
500
What is tax evasion?
Illegally avoiding to pay your taxes
500
What is the Social Security Act and why was it needed?
policy that offers pension to those who retire, so that they'll leave the workforce and open up jobs for younger people, the great depression
500
The grocery store is an example of a public or a private good?