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1. True or False: The U.S. Constitution grants the federal government the authority and the states the right to impose taxes on their residents.
True False
2. Which of the following is an example of mandatory spending?
Public Education Environmental Programs Scientific Research Social Security
3. Fill in the blank: With _____ tax, the lower the income, the higher the percentage paid in taxes.
Progressive Proportional Regressive Real-Estate
4. True or False: State and local taxes are not added to wireless services, such as cell phone bills.
True False
5. Which type of tax is NOT commonly imposed by states and local governments?
Income Tax Sales Tax Property Tax Federal Tax
6. Which of the following is NOT an example of government services funded by tax dollars?
Public Education Road Maintenance Private Healthcare Food Inspection
7. Fill in the Blank: _____ taxes are deducted from an employee's paycheck each pay period and are also paid by the employer.
Sales Income Property Payroll
8. True or False: In a proportional tax system, everyone pays the same proportion of their income in taxes, regardless of their income level.
True False
9. Which of the following categories of government spending accounts for about 30% of the federal budget?
Mandatory Spending Discretionary Spending Interest on Debt
10. Fill in the Blank: _____ tax imposes a higher tax rate on larger incomes.
Progressive Regressive Proportional Federal
11. Which of the following is NOT mentioned as a typical source of income used to calculate taxable income?
Salary Bonuses Tips Gifts
12. True or False: FICA taxes are used to fund Social Security and Medicare programs.
True False
13. Fill in the blank: _____ taxes are used to fund government services that benefit the community at large, such as roads, public schools, and public parks.
Federal Proportional Local Regressive
14. Which of the following is a tax system sometimes referred to as a flat tax because everyone, regardless of income, pays the same proportion of income in taxes?
Proportional Regressive Progressive Sales
15. Fill in the blank: The _____ budget, funded by tax dollars, is currently more than 4 trillion dollars.
State Federal Local Progressive
16. True or False: Understanding the taxes you pay and the governmental services that those dollars provide is an important part of being a responsible and informed US taxpayer.
True False