Chapter 7

Question 1

The role of government has grown tremendously over the last _______decades.

Answer 1

Seven

Question 2

True or false. State and local government are expected to provide more and more services while their tax bases are limited

Answer 2

True

Question 3

What is the largest source of federal tax revenues come from?

Answer 3

Individual income tax returns

Question 4

Each of the following is an indirect tax except the blank tax.
Gasoline, telephone, corporate income, and excise.

Answer 4

Corporate income tax

Question 5

True or False

The camp rock tax-cut of 1981 and the tax reform act of 1986 both lowered federal income tax receipts

Answer 5

True

Question 6

Most of the poor families pay ——–federal personal income tax.

Answer 6

No

Question 7

The seeds of expansion of economic role of the federal government or sound during the administration of who?

Answer 7

Franklin Roosevelt

Question 8

The federal government fiscal period year begins on what date

Answer 8

October 1

Question 9

The most important source of local tax revenue is the,,,,,,,,, tax.

Answer 9

Property taxes

Question 10

The sales tax is the most important source of,,,,,,,,,, government revenue.

Answer 10

State

Question 11

Which statement is true? The Social Security tax is an excise tax, a person earning 100,000 pays a higher percentage of her income and Social Security then someone earning 50, the Social Security tax is an indirect tax, or none is true

Answer 11

None is true

Question 12

The property tax that is the most important source of,,,,,,,,,, government revenue.

Answer 12

Local

Question 13

Which statement is false? There are now nine Federal personal income tax brackets, most people pay more in Social Security tax been in personal income tax, we pay more indirect than indirect taxes to the federal government, none is false.

Answer 13

There are now nine Federal personal income tax brackets.

Question 14

A wage earner making 10,000 pays – – more money and Social Security tax been in personal income tax, more personal income tax van in Social Security tax or about the same in Sosa security tax as in personal income tax.

Answer 14

More in Social Security tax then and personal income tax

Question 15

Which statement is false? The corporate income tax is the third largest source of federal tax revenue, the tax reform act of 1986 to go over millions of poor families off of the income tax rolls, the camp rough text cut of 1981 lowered the average citizens bill by 23%, or none is false.

Answer 15

None is false

Question 16

The federal government fiscal year is,,,,,,,,,,,, Months long.

Answer 16

12

Question 17

Compared to the people earning $150,000 a year, people earning $300,000 pay,,,,,,,,,,,, Social Security tax.

Answer 17

The same

Question 18

In 1980 the top marginal tax rate was

Answer 18

70%

Question 19

Which of the following statements does not apply to the US tax structure? The individual income tax system is progressive, general sales tax or regressive, the property taxes are important source of revenue for the federal government, or the major source of revenue for the federal government differs from major sources of revenue for state and local government’s.

Answer 19

Property taxes are an important source of revenue for the federal government

Question 20

Which of the following pairs represents the chief source of income and the most important type of expenditures for local governments

Answer 20

Property tax and expenditures for education

Question 21

A tax on,,,,,,, would be the least regressive.

Answer 21

Luxury cars

Question 22

In a progressive tax structure

Answer 22

The marginal tax rate exceeds the average tax rate

Question 23

Which of the following is a transfer payment

Answer 23

Veterans benefits

Question 24

The money that pays Social Security benefits is raised by

Answer 24

The taxes that both workers and employers pay

Question 25

Which of the following is not an example of a transfer payment?

Answer 25

The seller is received by social workers employed by the federal government.