1.If individual income tax accounts for more total revenue than the payroll tax
ID: 1202014 • Letter: 1
Question
1.If individual income tax accounts for more total revenue than the payroll tax in the U.S., why would over half the households in the country pay more in payroll taxes than in income taxes?
income tax is a proportional tax
income tax is a progressive tax
payroll tax is a regressive tax
payroll tax is a progressive tax
2.If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:
budget deficit.
budget surplus.
decrease in payroll tax.
decrease in proportional taxes.
3.If South Dakota's governor reports a budget surplus in 2011, that state government likely:
received more in taxes than it spent in that year.
increased the proportional tax level.
equalized spending and taxes in that year.
increased the corporate income tax rate.
4.If government tax policy requires Peter to pay $15,000 in tax on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:
optional.
progressive.
proportional.
regressive.
5.In 2010, Microsoft will pay corporate income tax to the federal government based on the company's __________________.
proportional tax rate
corporate profits
optional tax rate
excise profits
income tax is a proportional tax
income tax is a progressive tax
payroll tax is a regressive tax
payroll tax is a progressive tax
Explanation / Answer
1.If individual income tax accounts for more total revenue than the payroll tax in the U.S., why would over half the households in the country pay more in payroll taxes than in income taxes?
b. Income Tax is a progressive tax. As the taxable amount increases the progressive tax i.e income tax increases. This is why over half of the households in the country pay more in payroll taxes than in income taxes.
2.If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:
b. Budget Surplus. This is because tax revenues are more and total spending by the government is less.
3.If South Dakota's governor reports a budget surplus in 2011, that state government likely:
a.received more in taxes than it spent in that year. Since the taxes collected by South Dakota government is more than its spending this means a budget surplus.
4.If government tax policy requires Peter to pay $15,000 in tax on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is:
d.Regressive. In a regressive tax, the tax rate decreases as the taxable amount increases. In the present scenario, the tax rate has decreased as the taxable income has increased from $100,000 to $200,000.
5.In 2010, Microsoft will pay corporate income tax to the federal government based on the company's
b.Corporate Profits. A company needs to pay corporate income tax based on its corporate profits.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.