Asked by Chase Coley on May 18, 2024
Verified
Which is true?
A) The federal personal income tax is a progressive tax.
B) More than 75 percent of all taxpayers pay more in payroll taxes than personal income taxes.
C) The rich bear a greater burden than the poor by progressive taxes.
D) The most important source of federal tax revenue is the personal income tax.
E) All the choices.
Progressive Tax
A taxation system where the tax rate increases as the taxable amount or income increases, often aimed at fairness and equity.
Payroll Taxes
Financial impositions on either employees or the companies that employ them, often gauged as a portion of the wages that employees receive.
Federal Tax Revenue
Federal Tax Revenue is the income collected by the government through various forms of taxes, including income tax, corporate tax, and other taxes, funding government operations and services.
- Understand the various forms of taxation in the U.S. and their characteristics.
- Analyze tax reforms and their impact on different income groups within the U.S.
Verified Answer
SB
study buddyMay 21, 2024
Final Answer :
E
Explanation :
A) The federal personal income tax is indeed progressive, meaning the tax rate increases as the taxable amount increases. B) A significant portion of taxpayers, especially those with lower incomes, pay more in payroll taxes (for Social Security and Medicare) than in personal income taxes. C) Progressive taxes, by design, place a higher tax burden on the rich than on the poor, as they are based on the ability to pay. D) The personal income tax is the largest source of federal revenue, contributing more than any other single source.
Learning Objectives
- Understand the various forms of taxation in the U.S. and their characteristics.
- Analyze tax reforms and their impact on different income groups within the U.S.