Question 1

Today the typical American pays approximately what percent of income in taxes,including all federal,state,and local taxes?

Accepted Answer

A)   5 percent
B)   18 percent
C)   33 percent
D)   50 percentE) C) and D)
F) A) and D)

Question 2

The U.S.income tax

Accepted Answer

A)   discourages saving.
B)   encourages saving.
C)   has no effect on saving.
D)   will reduce the administrative burden of taxation.E) A) and D)
F) B) and D)

Question 3

When a tax is justified on the basis that the taxpayers who pay the tax receive specific government services from payment of the tax,the tax

Accepted Answer

A)   is considered horizontally equitable.
B)   burden is minimized.
C)   satisfies the benefits principle.
D)   is considered vertically equitable.E) None of the above
F) A) and D)

Question 4

Suppose a country imposes a lump-sum income tax of $5,000 on each individual in the country.What is the average income tax rate for an individual who earns $40,000 during the year?

Accepted Answer

A)   0%
B)   10%
C)   More than 10%
D)   The average tax rate cannot be determined without knowing the entire tax schedule.E) B) and D)
F) A) and B)

Question 5

In order to construct a more complete picture of the economic burden of government across income classes,economists usually

Accepted Answer

A)   include tax payments as well as transfer payments received.
B)   focus only on the tax payments of wealthy tax payers.
C)   limit their analysis to taxes based on the ability-to-pay principle.
D)   focus their analysis on issues of tax efficiency.E) A) and B)
F) A) and D)

Question 6

Maurice faces a progressive federal income tax structure that has the following marginal tax rates: 0 percent on the first $10,000,10 percent on the next $10,000,15 percent on the next $10,000,25 percent on the next $10,000,and 50 percent on all additional income.In addition,he must pay 5 percent of his income in state income tax and 15.3 percent of his labor income in federal payroll taxes.Maurice earns $60,000 per year in salary and another $10,000 per year in non-labor income.What is his average tax rate?

Accepted Answer

A)   17.19 percent
B)   46.69 percent
C)   48.87 percent
D)   56.01 percentE) B) and C)
F) A) and B)

Question 7

Table 12-12
United States Income Tax Rates for a Single Individual,2009 and 2010.
 
-Refer to Table 12-12.Kurt is a single person whose taxable income is $35,000 a year.What happened to his marginal tax rate between 2009 and 2010?

Accepted Answer

A)   It increased.
B)   It decreased.
C)   It did not change.
D)   We do not have enough information to answer this question.E) A) and D)
F) None of the above

Question 8

Scenario 12-4.A taxpayer faces the following tax rates on her income:
 
-Refer to Scenario 12-4.The taxpayer faces

Accepted Answer

A)   a marginal tax rate of 20 percent when her income rises from $40,000 to $40,001.
B)   a marginal tax rate of 20 percent when her income rises from $30,000 to $30,001.
C)   a marginal tax rate of 0 percent when her income rises from $30,000 to $30,001.
D)   a marginal tax rate of 10 percent when her income rises from $40,000 to $40,001.E) B) and D)
F) A) and B)

Question 9

The largest category of expenditures for state and local governments is __________.

Accepted Answer

The answer of The largest category of expenditures for state...

Question 10

For state and local governments,sales taxes and property taxes make up approximately

Accepted Answer

A)   19 percent of all receipts.
B)   22 percent of all receipts.
C)   35 percent of all receipts.
D)   48 percent of all receipts.E) A) and B)
F) A) and C)

Question 11

The income tax requires that taxpayers pay 10% on the first $40,000 of income and 20 percent on all income over $40,000.Karen paid $6,000 in taxes.What were her marginal and average tax rates?

Accepted Answer

A)   20 percent and 12 percent,respectively
B)   20 percent and 15 percent,respectively
C)   10 percent and 12 percent respectively
D)   10 percent and 15 percent respectivelyE) A) and B)
F) A) and C)

Question 12

Table 12-2
Consider the tax rates shown in the table below.
 
-Refer to Table 12-2.If Mateo has taxable income of $165,000,his tax liability is

Accepted Answer

A)   $23,800.
B)   $36,000.
C)   $45,000.
D)   $47,698.E) A) and B)
F) A) and C)

Question 13

Medicaid is

Accepted Answer

A)   the government's health plan for the elderly.
B)   the government's health plan for the poor.
C)   another name for Social Security.
D)   Both a and c are correct.E) A) and B)
F) A) and C)

Question 14

In practice,the U.S.income tax system is filled with special provisions that alter a family's tax based on its specific circumstances.

Accepted Answer

A) True 
 B)False

Question 15

Part of the deadweight loss from taxing labor earnings is that people

Accepted Answer

A)   will work more.
B)   will be reluctant to hire accountants to file their tax returns.
C)   with low tax liabilities will universally be worse off than under some other tax policy.
D)   will work less.E) B) and C)
F) A) and D)

Question 16

For state and local governments,education accounts for approximately what percentage of spending?

Accepted Answer

A)   25 percent
B)   34 percent
C)   50 percent
D)   75 percentE) A) and B)
F) A) and C)

Question 17

If James earns $80,000 in taxable income and pays $20,000 in taxes,his average tax rate is 25 percent.

Accepted Answer

A) True 
 B)False

Question 18

For the 2010 calendar year only,the federal estate tax does not exist.Which of the following is not correct?

Accepted Answer

A)   The one year absence of this tax creates peculiar incentives for people with large estates who are nearing the end of their lives.
B)   Some people created provisions in their health-care proxies allowing for life support to continue until 2010 so the estate beneficiaries would receive a larger bequest.
C)   The estate tax usually applies to about 5,500 taxpayers per year.
D)   Before 2010,the estate tax was approximately 20 percent of the total estate.E) B) and C)
F) A) and D)

Question 19

Of the following countries,which country's government collects the largest amount of tax revenue as a percentage of that country's total income?

Accepted Answer

A)   France
B)   United States
C)   Canada
D)   SwedenE) A) and B)
F) All of the above

Question 20

In 2009,the average American paid approximately how much to the federal government in taxes?

Accepted Answer

A)   $1,900
B)   $4,500
C)   $6,800
D)   $8,500E) All of the above
F) C) and D)

Exam 12: The Design of the Tax System

Scenario 12-4.A taxpayer faces the following tax rates on her income: -Refer to Scenario 12-4.The taxpayer faces

Correct Answer
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When a tax is justified on the basis that the taxpayers who pay the tax receive specific government services from payment of the tax,the tax

Correct Answer
verified

Of the following countries,which country's government collects the largest amount of tax revenue as a percentage of that country's total income?

Correct Answer
verified

In 2009,the average American paid approximately how much to the federal government in taxes?

Correct Answer
verified

For state and local governments,sales taxes and property taxes make up approximately

Correct Answer
verified

For the 2010 calendar year only,the federal estate tax does not exist.Which of the following is not correct?

Correct Answer
verified

In order to construct a more complete picture of the economic burden of government across income classes,economists usually

Correct Answer
verified

The largest category of expenditures for state and local governments is __________.

Correct Answer
verified

In practice,the U.S.income tax system is filled with special provisions that alter a family's tax based on its specific circumstances.

Correct Answer
verified

For state and local governments,education accounts for approximately what percentage of spending?

Correct Answer
verified

The income tax requires that taxpayers pay 10% on the first $40,000 of income and 20 percent on all income over $40,000.Karen paid $6,000 in taxes.What were her marginal and average tax rates?

Correct Answer
verified

Table 12-12 United States Income Tax Rates for a Single Individual,2009 and 2010. -Refer to Table 12-12.Kurt is a single person whose taxable income is $35,000 a year.What happened to his marginal tax rate between 2009 and 2010?

Correct Answer
verified

Correct Answer
verified

The U.S.income tax

Correct Answer
verified

If James earns $80,000 in taxable income and pays $20,000 in taxes,his average tax rate is 25 percent.

Correct Answer
verified

Today the typical American pays approximately what percent of income in taxes,including all federal,state,and local taxes?

Correct Answer
verified

Medicaid is

Correct Answer
verified

Table 12-2 Consider the tax rates shown in the table below. -Refer to Table 12-2.If Mateo has taxable income of $165,000,his tax liability is

Correct Answer
verified

Suppose a country imposes a lump-sum income tax of $5,000 on each individual in the country.What is the average income tax rate for an individual who earns $40,000 during the year?

Correct Answer
verified

Part of the deadweight loss from taxing labor earnings is that people

Correct Answer
verified

Exam 12: The Design of the Tax System

Scenario 12-4.A taxpayer faces the following tax rates on her income: -Refer to Scenario 12-4.The taxpayer faces

Correct AnswerverifiedShow Answer

When a tax is justified on the basis that the taxpayers who pay the tax receive specific government services from payment of the tax,the tax

Correct AnswerverifiedShow Answer

Of the following countries,which country's government collects the largest amount of tax revenue as a percentage of that country's total income?

Correct AnswerverifiedShow Answer

In 2009,the average American paid approximately how much to the federal government in taxes?

Correct AnswerverifiedShow Answer

For state and local governments,sales taxes and property taxes make up approximately

Correct AnswerverifiedShow Answer

For the 2010 calendar year only,the federal estate tax does not exist.Which of the following is not correct?

Correct AnswerverifiedShow Answer

In order to construct a more complete picture of the economic burden of government across income classes,economists usually

Correct AnswerverifiedShow Answer

The largest category of expenditures for state and local governments is __________.

Correct AnswerverifiedShow Answer

In practice,the U.S.income tax system is filled with special provisions that alter a family's tax based on its specific circumstances.

Correct AnswerverifiedShow Answer

For state and local governments,education accounts for approximately what percentage of spending?

Correct AnswerverifiedShow Answer

The income tax requires that taxpayers pay 10% on the first $40,000 of income and 20 percent on all income over $40,000.Karen paid $6,000 in taxes.What were her marginal and average tax rates?

Correct AnswerverifiedShow Answer

Table 12-12 United States Income Tax Rates for a Single Individual,2009 and 2010. -Refer to Table 12-12.Kurt is a single person whose taxable income is $35,000 a year.What happened to his marginal tax rate between 2009 and 2010?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The U.S.income tax

Correct AnswerverifiedShow Answer

If James earns $80,000 in taxable income and pays $20,000 in taxes,his average tax rate is 25 percent.

Correct AnswerverifiedShow Answer

Today the typical American pays approximately what percent of income in taxes,including all federal,state,and local taxes?

Correct AnswerverifiedShow Answer

Medicaid is

Correct AnswerverifiedShow Answer

Table 12-2 Consider the tax rates shown in the table below. -Refer to Table 12-2.If Mateo has taxable income of $165,000,his tax liability is

Correct AnswerverifiedShow Answer

Suppose a country imposes a lump-sum income tax of $5,000 on each individual in the country.What is the average income tax rate for an individual who earns $40,000 during the year?

Correct AnswerverifiedShow Answer

Part of the deadweight loss from taxing labor earnings is that people

Correct AnswerverifiedShow Answer

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