Podcast
Questions and Answers
_______ equity conforms to the concept that people with a similar ability to pay taxes should pay the same or similar amounts.
_______ equity conforms to the concept that people with a similar ability to pay taxes should pay the same or similar amounts.
Horizontal
Vertical equity usually refers to the idea that people with a _______ ability to pay taxes should pay more.
Vertical equity usually refers to the idea that people with a _______ ability to pay taxes should pay more.
greater
Income taxes incorporate both horizontal and vertical equity via a _______ tax mechanism.
Income taxes incorporate both horizontal and vertical equity via a _______ tax mechanism.
progressive
Sales taxes are _______ and are considered inequitable.
Sales taxes are _______ and are considered inequitable.
The ratio of the amount of taxes paid to the tax base is known as the average tax _______.
The ratio of the amount of taxes paid to the tax base is known as the average tax _______.
The tax rate that applies to the last unit of currency of the tax base is called the marginal tax _______.
The tax rate that applies to the last unit of currency of the tax base is called the marginal tax _______.
A proportional tax is imposed so that the tax rate is fixed, with no change as the taxable base amount ______ or decreases.
A proportional tax is imposed so that the tax rate is fixed, with no change as the taxable base amount ______ or decreases.
A regressive tax is imposed in such a manner that the tax rate decreases as the amount subject to taxation ______.
A regressive tax is imposed in such a manner that the tax rate decreases as the amount subject to taxation ______.
Tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of ______ and price elasticity of supply.
Tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of ______ and price elasticity of supply.
If the demand curve is inelastic relative to the supply curve, the tax will be disproportionately borne by the ______ rather than the seller.
If the demand curve is inelastic relative to the supply curve, the tax will be disproportionately borne by the ______ rather than the seller.
If a producer (consumer) is inelastic, it will produce (demand) the same quantity no matter what the ______.
If a producer (consumer) is inelastic, it will produce (demand) the same quantity no matter what the ______.
If the producer (consumer) is elastic, the producer (consumer) is very sensitive to ______.
If the producer (consumer) is elastic, the producer (consumer) is very sensitive to ______.
Match the following tax types with their descriptions:
Match the following tax types with their descriptions:
Match the following concepts with their definitions:
Match the following concepts with their definitions:
Match the following statements about tax burden with their correct explanations:
Match the following statements about tax burden with their correct explanations:
Match the following tax-related terms with their definitions:
Match the following tax-related terms with their definitions:
Match the following terms related to elasticity with their descriptions:
Match the following terms related to elasticity with their descriptions:
Match the following equity concepts with their definitions:
Match the following equity concepts with their definitions:
Match the following taxation systems with their characteristics:
Match the following taxation systems with their characteristics:
Match the following terms related to taxation burden with their implications:
Match the following terms related to taxation burden with their implications:
Match each term with its definition.
Match each term with its definition.
What does horizontal equity in taxation refer to?
What does horizontal equity in taxation refer to?
What is the main characteristic of a regressive tax system?
What is the main characteristic of a regressive tax system?
Which tax type is associated with vertical equity in taxation?
Which tax type is associated with vertical equity in taxation?
What does the term 'inelastic' imply in economic terms?
What does the term 'inelastic' imply in economic terms?
What does the marginal tax rate apply to?
What does the marginal tax rate apply to?
Which characteristic best describes a progressive tax system?
Which characteristic best describes a progressive tax system?
What is the main difference between average tax rate and marginal tax rate in a progressive tax?
What is the main difference between average tax rate and marginal tax rate in a progressive tax?
In a proportional tax system, the tax rate:
In a proportional tax system, the tax rate:
What does tax incidence primarily depend on?
What does tax incidence primarily depend on?
If a producer is inelastic, they will:
If a producer is inelastic, they will:
What happens if a consumer is elastic with respect to price?
What happens if a consumer is elastic with respect to price?
What is the main principle behind a laddered progressive income tax?
What is the main principle behind a laddered progressive income tax?
How does a proportional tax differ from a progressive tax?
How does a proportional tax differ from a progressive tax?
Under a laddered progressive tax system, why can income taxes become regressive for high earners?
Under a laddered progressive tax system, why can income taxes become regressive for high earners?
How does the concept of vertical equity relate to the laddering of income tax rates?
How does the concept of vertical equity relate to the laddering of income tax rates?
What characteristic defines horizontal equity in the context of taxation?
What characteristic defines horizontal equity in the context of taxation?
Why do high earners sometimes face a regressive tax burden under a laddered income tax system?
Why do high earners sometimes face a regressive tax burden under a laddered income tax system?
