Question

1)progressive income tax is one that

A.taxes income at a constant​ rate, regardless of the level of income.

B.taxes income so that the average tax rate increases with the level of income.

C.taxes all income above the guaranteed minimum at an average rate that decreases with income.

D.taxes income so that the average tax rate decreases with the level of income.

2)An income tax for which the average tax rate decreases with income is called a

A.flatminus−rateincome tax.

B.regressive income tax.

C.progressive income tax.

D.proportional income tax.

3)

A worker pays a tax for Social Security at a constant rate up until a certain level of income is reached. Beyond that income​ level, no more Social Security tax is paid. The Social Security tax is an example of a

A.sales tax.

B.progressive tax.

C.proportional tax.

D.regressive tax.

4)Joe earns​ $100,000 per year. He pays a tax rate of 28 percent on the first​ $60,000 of income and a tax rate of 15 percent on income above​ $60,000. This tax system is an example of a

a)regressive income tax.

B.progressive income tax.

C.negative income tax.

D.proportional income tax.

proportional income tax is defined as a tax for which

A.

the average tax rate is the same at all levels of income.

B.

total taxes paid increase with the level of income.

C.

the average tax rate increases with the level of income.

6)

ocial security provides payments

A.

to retired and disabled workers.

B.

for food so that the poor can obtain a basic diet.

C.

to aid married families with dependents.

D.to unemployed

ableminus−bodied

workers.

D.

total taxes paid are independent of the level of income.

Answer 1

Q1) option B)

For progressive taxation, as income rises, average tax rate rises

Q2) option B)

It is regressive taxation, when avg tax rate falls with rise in income

Q3) optionD)

It is regressive tax, bcoz after certain income level, no tax is paid

So avg tax rate falls, as income rising

Q4) option A)

Regressive tax rate, as Marginal tax rate falla

Q5) option A)

Proportional income tax is when avg tax rate is same for all income levels

Q6) option A)

To retired & disabled workers