SOLVED

21) A proportional 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 is the same at all levels of income. 22) An income tax for which the average tax rate is constant called a A) regressive income tax. B) proportional income tax. C) marginal income tax. D) progressive income tax. 23) A flat-rate income tax is also called ________. A) an excise tax B) a property tax C) a proportional income tax D) a constant rate tax 24) With a proportional tax A) a poor household pays a larger percentage of its income in taxes than a rich one. B) a rich household pays a larger percentage of its income in taxes than a poor one. C) all households pay the same total amount of tax. D) all households pay the same percentage of their income as taxes. 25) If both rich and poor families pay 25 percent of their income in taxes, the tax scheme is ________. A) proportional B) regressive C) negative D) progressive 26) Consider the country of Outland. In Outland, people pay 10 percent of their income as a tax whether they earn $10,000 or $100,000 annually. Outland has ________ tax structure. A) a progressive B) a regressive C) a proportional D) an excessive 27) Alex, Bill, and Cid live in Souland. Their annual incomes and the amounts they pay in income tax are shown in the table below. Income Tax Alex 30,000 6,000 Bill 20,000 4,000 Cid 40,000 8,000 The income tax in Souland is A) proportional. B) disproportional. C) regressive. D) progressive. Gross income (dollars) Plan A: tax payment (dollars) Plan B: tax payment (dollars) Plan C: tax payment (dollars) 0 0 0 0 1,000 100 100 200 2,000 200 400 250 4,000 400 1,600 300 28) In the above table, which tax plan is progressive? A) only plan A B) only plan B C) only plan C D) both plan B and plan C 29) In the above table, which tax plan is regressive? A) only plan A B) only plan B C) only plan C D) both plan A and plan C 30) In the above table, which tax plan is proportional? A) only plan A B) only plan B C) only plan C D) both plan A and plan C