Which type of tax policy has individuals who earn lower incomes pay larger percentages of their income in taxes quizlet?

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Which type of tax policy has individuals who earn higher incomes pay a larger percentage of their income in taxes quizlet?
What is regressive tax and example?
What type of tax system puts more of the tax burden on lower income individuals?
Which type of tax takes a higher percentage from poorer people?

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-They also provide financial help to local governments for public elementary and secondary schools.

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-State police enforce traffic laws and help motorists in an emergency.
-State governments build and run corrections systems.

Public Welfare
-State funds support hospitals and clinics and unemployment benefits.

Highway and Transportation
-State crews resurface roads and repair bridges.
-States pay some of the cost of facilities like waterways and airports.

Arts and Recreation
-States fund parks, nature reserves, museums, and art and music programs.

Administration
-State governments spend money to keep the government running.
-Revenues pay for state workers' salaries.

An efficient tax system is one that

(i)maximizes tax revenues.

(ii)minimizes deadweight losses from taxes.

(iii)minimizes administrative burdens from taxes.

(iv)promotes equity across taxpayers.

a. (i) only

b. (ii) and (iii) only

c. (i), (ii), and (iii) only

d. (i), (ii), (iii), and (iv)

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charges 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%

Background information: In 2012, President Obama and Congress debated the issue of taxes and tax cuts.
In this speech, President Obama is discussing the effects of a potential tax increase.
A typical middle-class family of four would see its income taxes go up by $2,200. That's $2,200 out of people's pockets. That means less money for buying groceries, less money for filling prescriptions, less money for buying diapers. . . .

. . . Businesses can't afford it either. . . . Economists predict that if taxes go up on the middle class next year, consumers will spend nearly $200 billion less on things like cars and clothes and furniture - and that obviously means fewer customers. That cuts into business profits.That makes businesses less likely to invest and hire, which means fewer jobs.And that can drag our entire economy down.

—President Barack Obama,
November 28, 2012

Which statements best communicate the main idea of this speech? Check all that apply.

Increased taxation on the middle class will improve the economy.
Lower taxes increase consumer spending.
Increased consumer spending strengthens the economy.
Higher taxes will have a severe impact on citizens.
Spending on social needs is a low priori

Which type of tax policy has individuals who earn higher incomes pay a larger percentage of their income in taxes quizlet?

Regressive taxes are when higher income people pay a smaller percent of income than the lower income people (state and city sales taxes). Progressive taxes are when higher income people pay a greater percent of their income compared to lower income people (federal income taxes).

What is regressive tax and example?

A regressive tax is where the tax rate falls for those who are in higher income brackets. In other words, lower-income households face a higher tax rate, as a percentage of their income, than higher-income groups. For example, a retail worker earning $20,000 may pay 40 percent in taxes.

What type of tax system puts more of the tax burden on lower income individuals?

A regressive tax is a type of tax that is assessed regardless of income, in which low- and high-income earners pay the same dollar amount. This kind of tax is a bigger burden on low-income earners than high-income earners, for whom the same dollar amount equates to a much larger percentage of total income earned.