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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.
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. payroll tax is a regressive tax
Explanation: payroll taxes in the United States, are regressive in that there is a cap so that higher income earners pay a lower proportion of their overall income than lower earning people.
2. budget surplus
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