31. Assume you pay a tax of $4,000 on an income of $20,000. If your income were

Question

31. Assume you pay a tax of $4,000 on an income of $20,000. If your income were $30,000 your tax would be $6,000. This suggests that the tax is (a) progressive (b) proportional (c) regressive 32. The "ability to pay" principle of taxation is based on the supposition that households spend their first dollars of income on necessities and spend successive dollars of income on less and less essential goods 33. "A person who does not own or drive a car should not be required to pay taxes to maintain the George Washington bridge." This view is consistent with the benefits-received principle of taxation 34. If each US taxpayer paid the same amount in tax, regardless of income level, the tax would be (a) progressive (b) proportional (c) regressive 35. The New York State "lottery" is a regressive tax because (a) people who play the lottery do not believe they are being taxed (b) lower income people buy more lottery tickets than high income people (c) the more you spend on lottery tickets the smaller your overall payout if you win (d) all of the above

Explanation / Answer

31)

Percentage of tax = 4000/ 20,000

= 20 %

Percentage of tax when income is 30,000

= 6,000 / 30,000

= 20 %

Hence, proportional tax.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.