Exam 18: Public Choice, taxes, and the Distribution of Income

Income inequality in the United States has increased somewhat over the past 25 years.Two factors that appear to have contributed to this are

According to the horizontal-equity principle of taxation,

In the United States,the largest source of funds for public schools is

The burden of a tax on soft drinks would fall more on ________ the more ________.

Congressman Gallstone seeks support from his colleagues for a bill he sponsors that will establish a new national park in his district.He offers to support Congresswoman Disrail's proposal to build a new library in her district in exchange for her vote for his national park bill.This is an example of

In reference to the federal income tax system,a tax bracket is

Which of the following is an example of a federal mandate?

Which of the following statements concerning the federal corporate income tax is true?

Table 18-3 Table 18-3 contains data on household spending at different income levels.Suppose that a 3 percent tax is levied on all consumption spending. -Refer to Table 18-3.Calculate the percent of income paid in taxes by a family with $20,000 income and by a family with $24,000 income.

According to the benefits-received principle of taxation,

When members of Congress vote to pass new legislation,they will

Which of the following explains one difference between a consumption tax and an income tax?

The proposition that the outcome of a majority vote is likely to represent the preferences of the voter who is in the political middle is called

Which of the following is the largest source of revenue for the U.S.federal government?

Income inequality increases as the Gini coefficient approaches 1.

Figure 18-1 -Refer to Figure 18-1.Area E+H represents

In the United States,over the past 40 years federal revenues as a share of gross domestic product have

The marginal tax rate is

Many state governments use lotteries to raise revenue.If a lottery is viewed as a tax,is it most likely a progressive tax or a regressive tax? What information would you need to determine whether the burden of a lottery is progressive or regressive?

Last year,Anthony Millanti earned exactly $30,000 of taxable income.Assume that the income tax system used to determine Anthony's tax liability is progressive.The table below lists the tax brackets and the marginal tax rates that apply to each bracket. a.Draw a new table that lists the amounts of income tax that Anthony is obligated to pay for each tax bracket,and the total tax he owes the government.(Assume that there are no allowable tax deductions,tax credits,personal exemptions or any other deductions that Anthony can use to reduce his tax liability). b.Determine Anthony's average tax rate.