Match the clues below to their correct answers by choosing from the drop-down menu. Continue to Part 2 or, to assess your answers, click Check My Answers at the bottom of the page.
Indicate whether each of the statements below is true or false by clicking on the correct answer. Continue to Part 3 or, to assess your answers, click the Check My Answers button at the bottom of the page.
- A regressive tax takes a smaller share of income from low-income groups than from high-income groups
- Regressive taxes include fixed amounts of tax on each individual or household.
- Federal taxes on alcohol and gasoline take a larger percentage of income from those with high incomes.
- Sales taxes tend to be regressive because they take a larger percentage of the income of low-income taxpayers.
- To make their sales taxes less regressive, many states exempt basic necessities such as food from taxation.
Answer the following multiple-choice questions by clicking on the correct answer. To assess your answers, click the Check My Answers button at the bottom of the page.
- A regressive tax takes the largest percentage of income from which group?
- Which is not an example of a commonly used regressive tax?
- Which is not an example of a user fee?
- What is the goal of a sales tax holiday?
- Most states do not tax