Internal Revenue Service United States Department of the Treasury

Theme 3: Fairness in TaxesLesson 2: Regressive Taxes

 

Part 1

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.

Part 2

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.

  1. A regressive tax takes a smaller share of income from low-income groups than from high-income groups
  • A.
  • B.
  1. Regressive taxes include fixed amounts of tax on each individual or household.
  • A.
  • B.
  1. Federal taxes on alcohol and gasoline take a larger percentage of income from those with high incomes.
  • A.
  • B.
  1. Sales taxes tend to be regressive because they take a larger percentage of the income of low-income taxpayers.
  • A.
  • B.
  1. To make their sales taxes less regressive, many states exempt basic necessities such as food from taxation.
  • A.
  • B.
Part 3

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.

  1. A regressive tax takes the largest percentage of income from which group?
  • A.
  • B.
  • C.
  • D.
  1. Which is not an example of a commonly used regressive tax?
  • A.
  • B.
  • C.
  • D.
  1. Which is not an example of a user fee?
  • A.
  • B.
  • C.
  • D.
  1. What is the goal of a sales tax holiday?
  • A.
  • B.
  • C.
  • D.
  1. Most states do not tax
  • A.
  • B.
  • C.
  • D.

 

Assessment
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