17.1 Government Spending and Taxation

A person who moves to a different town and buys a new house the same size as the old one can expect to pay the same amount of property taxes on both houses.

False Property tax rates are set by each local government therefore the property taxes may be different.

Revenues for state and local governments come primarily from __________.

property taxes, sales taxes, and revenue shared by the federal government

Which of the following is the correct components of state and local revenues in the US?

Corporate taxes, individual income taxes, property taxes, revenue from federal government, sales taxes and other

Which of the following best defines the term balanced budget?

A balanced budget is a financial situation in which government spending and taxes are equal.

If the federal government spends $1.4 trillion more dollars than it collects in tax revenue, what occurs?

A budget deficit.

Which statement best defines the term "payroll tax"?

A payroll tax is a tax based on the wages earned by an employee.

Define individual income tax.

A personal income tax based on a persons income or salary.

What is a "regressive tax"?

A regressive tax is a tax that requires people with higher incomes to pay a smaller share of their income in tax than people with lower incomes.

What is an "excise tax"?

An excise tax is a tax on specific goods, usually gasoline, tobacco, and alcohol.

What type of tax is the federal income tax?

Progressive

Suppose the U.S. government levies a tax that requires all people to pay 5% of their income to be used for environmental preservation. What type of tax would this be?

Proportional

Of the following, which are true of state and local taxes?

The main revenue sources for state and local governments are sales taxes, property taxes, and revenue passed along from the federal government. State and local governments collect taxes imposed on business firms.

Why do many find the political rhetoric in presidential elections about education spending to be insincere?

because while presidential candidates talk of increasing the federal spending on education, most of the spending is by state and local governments

Identify which of the following expense could be on the budget of the city of San Francisco.

libraries