1- If a household earning $50,000 annually pays $10,000 in taxes while a household earning $100,000 annually pays $25,000 in taxes, then the tax system is
a Regressive
b Progressive
c Neither regressive nor progressive
d Both regressive and progressive
2- The Social Security and Medicare taxes in the United States, which are payroll taxes, fit the description of which of the following tax structures?
a Regressive
b Proportional
c Progressive
d It depends on the income of the individual taxed
3- Which of the following statements is FALSE?
a Worldwide, no countries are catching up to the United States with respect to GDP per capita
b Income distributions have become less equal in the United States in the past 30 years
c Higher taxes tend to reduce the incentive to work productively and innovate
d The poverty rate measures the percentage of people living in households with incomes below the poverty line