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F4 Fiscal Policy. Taxes Questions and Answers Graded A+
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F4 Fiscal Policy. Taxes
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F4 Fiscal Policy. TaxesWhy taxes exist
governments collect taxes in order to: - answer fund necessary programs like
infrastructure
ensure that citizens contribute appropriately to meeting needs in their society.
Congress shall have power - answer power to tax:
Congress
lay and collect taxes
duties
imposts
excises
Article 1, section 8
Constitution of the United States
Article I, Section 8
Phrase A) The Congress shall have Power To lay and collect Taxes, Duties, Imposts
and Excises
Phrase B) to pay the Debts and provide for the common Defence and general Welfare
of the United States
Phrase C) but all Duties, Imposts and Excises shall be uniform throughout the United
States
Which phrase defines the reasons why the federal government collects taxes?
_______________
Which phrase grants the federal government the power to collect taxes?
______________________ - answer
Which phrase defines the reasons why the federal government collects taxes?
_______________ - answerPhrase B) to pay the Debts and provide for the common
Defence and general Welfare of the United States
, Which phrase grants the federal government the power to collect taxes?
______________________ - answerPhrase A) The Congress shall have Power To lay
and collect Taxes, Duties, Imposts and Excises
Three ways governments can approach taxation - answertypes of taxation:
1 progressive taxation
2 proportional taxation
3 regressive taxation
1 progressive taxation - answercharges individuals with higher incomes a higher
percentage of their total income
progressive income tax
citizen a 25,000 10 percent 2,500 tax paid
citizen b 75,000 20 percent 14,000 tax paid
citizen c 150,000 28 percent 42,000 tax paid
50,000 20%
36,000 15%
2 proportional taxation - answercharges higher and lower income citizens equally in
porportion to their income
OR CALLED FLAT TAXES
proportional income tax
income 25,000 tax rate 15% tax paid 3,750
75,000 tax rate 15% tax paid 11,250
150,000 tax rate 15% TAX PAID 22,500
50,000 10%
36,000 10%
3 Regressive Taxation - answercharges individuals with high incomes a LOWER
percentage of their total income.
25,000 income 15,000 amount spent 1,050
sales tax rate 7% tax rate 4.2%
75,000 income 15,000 amount spent 1,050 sales tax rate 7% tax 1.4% tax rate
150,000 income 15,000 amount spent 1,050 sales tax rate 7% tax rate 0.7%
50,000 15%
36,000 20%
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