Chapter 7
A person earning $200,000 a year pays _____ in payroll taxes. Assume a Social Security Limit of $118,500.
$10,247
Above is a chart that shows the tax rates for single and married people. How much would a single person pay in taxes if he made $85,000?
17,520
The economic policy of the U.S. government could have been described as laissez-faire until about
1933
The Pataki family pays $12,000 in federal income tax out. Their income is 50,000. Their average (effective ) tax rate is
24%
If your taxable income rises from $75,000 to $147,000, and the taxes you pay rise from $15,000 to $33,000, your marginal tax rate is
25%
Assume that the Social Security Income cap is $118,500. How much will a person pay in payroll taxes if he earns in wages $125,000?
9,159
Which one of these is NOT an economic function of the federal government or Federal Reserve?
Each is an economic function of the federal government.
which statement is true?
State and local governments are expected to provide more and more services while their tax bases are limited.
Statement I: A progressive tax places a heavier burden on the rich than on the poor. Statement II: The Social Security tax and Medicare tax are both regressive.
Statement I is true and statement II is false.
Statement I: Social Security benefits are financed entirely by taxes that workers pay. Statement II: Social Security benefits are a government transfer payment.
Statement II is true and statement I is false.
The social security tax is NOMINALLY
direct and regressive
Transfer payments to individuals amount to a little less than _____ of total government spending.
half
An individual taxpayer with a taxable income of $160,000
has a higher marginal than average tax rate.
If Mr. Perot faces a 90 percent marginal tax rate,
he has a strong incentive to work less.
The largest source of federal tax revenue comes from
individual income taxes
in 2008, a person earning 300,000 would pay Social Security tax on
less than half of their income
The property tax is the most important source of ______ government revenue.
local
A tax on _____ would be the least impactful to all consumers.
luxury cars
The Jones family has an average tax rate of 15 percent. Its marginal tax rate is
more than 15%
Most poor families pay ____ federal personal income tax
no
The fastest growing source of federal tax revenue is the _________ tax.
payroll
The most important source of local tax revenue is the _______ tax
property
Excise taxes are Nominally
proportional
Mr. Bush earns $1,000,000 and pays $100,000 in taxes. Mr. Gore earns $150,000 and pays $17,500 in taxes. The tax they pay would be considered
regressive
The most important source of state tax revenue is the ________ tax
sales
The sales tax is the most important source of _________ government revenue
state
The key agency in the preparation of the president's budget is
the office of Management and Budget (OMB).
The federal budget is prepared and passed by
the president and congress
A salary worker making $1,000,000 pays
the same in Social Security tax as a person making a salary of 120,000
Which of the following is a transfer payment?
veterans benefits