Exam 17: Taxation and Resource Allocation

Homeowners receive tax benefits that are not available to renters.

Cities and towns mainly rely for revenue on

The incidence of a tax explains what group pays the burden of a tax.

The federal income tax is a good example of a

Social Security payroll taxes are examples of

The benefits principle is often used to justify

Revenue sharing is usually a means of

Many Americans believe that taxes have been gobbling up an ever-increasing share of the U.S.economy.Is this observation correct? Explain.

Loopholes have the effect of

The total burden of a tax is the

A congress member concerned about ensuring vertical equity in taxation would be most likely to argue for obtaining government revenue through a

From the passage of the 16th amendment to the U.S.Constitution, income taxes became the primary source of income for the U.S.

Figure 18-1 -According to the graph in Figure 18-1, tax collections will be which of the following?

Members of the European Union (EU), rely heavily on this form of indirect taxes.

Explain whether or not the ability-to-pay principle of tax equity is consistent with the benefits received principle of taxation.

The excess burden of an excise tax is

When demand for a product is very inelastic, the burden of a tax falls mainly on

States rely primarily on income taxes as a source of revenue.

Above a certain income the marginal social security tax drops to zero.

Which of the following is exempt from taxation (a tax exemption)?