Macro Chapter 17
In 2013, the U.S. federal government received about ______ in tax revenue
$2.8 trillion
Since the mid-1950s, federal government taxation has been about _____ of GDP
18%
If tax rates are 10% on income up to $10,000, 20% for income between $10,001 and $20,000, and 30% for income over $20,000, the marginal tax rate for a person earning $25,000 is:
30%
In 2013, the US federal budget deficit was about ______ of GDP
6% of GDP
The Social Security system is becoming: A. less generous B. more generous C. more profitable D. more reliable
A. less generous
Social Security taxes account for the largest source of U.S. federal government receipts today. True or False
False
The U.S. federal income tax system is regressive:
False
The purpose of FICA taxes is to fund:
Social Security payments
What demographic change in the U.S. will cause government spending to increase in the next 50 years?
The population older than 65 will grow.
Which of the following is an example of a progressive tax system?
U.S. federal income tax
About one-quarter of the total U.S. national debt is held by:
agencies in the federal government
What is the difference between deceit and national debt?
deficit debt us the annual difference between federal spending and revenues. National debt is all federal debt held outside the US gov
Income that is not subject to taxation is called:
exempt income
Which of the following sources of tax revenues make up more than 90% of all government revenue?
individual income tax, corporate income tax, and Social Security and Medicare taxes
The tax rate paid on an additional dollar of income is called the:
marginal tax rate
The U.S corporate income tax rate is:
one of the highest in the world
Which country spends the most on military?
the U.S.
Social Security and Medicare primarily transfer wealth to:
the elderly
Together, Social Security, defense, Medicare, and Medicaid make up approximately _____ of the US federal budget.
two-thrids