SOLVED

11) An income tax for which the average tax rate decreases with income is called a A) regressive income tax. B) proportional income tax. C) flat-rate income tax. D) progressive income tax. 12) Consider the country of Inland. In Inland, people’s average tax rates decrease with the level of income. Inland has a ________ tax structure. A) progressive B) regressive C) proportional D) flat-rate 13) A tax is regressive if the average tax rate A) increases as income increases. B) increases as income decreases. C) is negative. D) is less than one. 14) A regressive income tax is defined as a tax for which A) total taxes paid increase with the level of income. B) total taxes paid are independent of the level of income. C) the average tax rate increases with the level of income. D) the average tax rate decreases with the level of income. 15) A income tax system in which the average tax rate decreases with the level of income is called a A) progressive income tax system. B) proportional income tax system. C) regressive income tax system. D) flat-rate income tax system. 16) Regressive income taxes are A) an important form of income redistribution. B) present when the average tax rate decreases as income decreases. C) present when the average tax rate decreases as income increases. D) Both answers A and B are correct. 17) A worker pays a tax for Social Security at a constant rate up until a certain level of income is reached. Beyond that income level, no more Social Security tax is paid. The Social Security tax is an example of a A) progressive tax. B) regressive tax. C) proportional tax. D) sales tax. 18) Joe earns $100,000 per year. He pays a tax rate of 28 percent on the first $60,000 of income and a tax rate of 15 percent on income above $60,000. This tax system is an example of a A) regressive income tax. B) negative income tax. C) progressive income tax. D) proportional income tax.  Income (dollars) Tax paid (dollars) 12,000 1,200 20,000 1,600 50,000 3,000 19) What type of income tax is reflected in the table above? A) regressive income tax B) proportional income tax C) progressive income tax D) negative income tax 20) Alice, Bob, and Cody live in Wesland. Their annual incomes and the amounts they pay in income tax are shown in the table below. Income Tax Alice 30,000 6,000 Bob 50,000 7,500 Cody 100,000 12,000 The income tax in Wesland is A) proportional. B) regressive. C) flat-rate. D) progressive.