The Design of the Tax System

According to the overview in Chapter 12, what are the two most important objectives for policymakers when designing a tax system?

Based on Table 2, 'Receipts of the Federal Government: 2009', what were the two largest sources of revenue for the U.S. federal government?

What is the term for the costs taxpayers bear in the process of complying with tax laws, beyond the tax payment itself?

A tax system in which high-income taxpayers pay a smaller fraction of their income than low-income taxpayers is called:

According to Table 4, 'Spending of the Federal Government: 2009', what was the largest category of federal spending?

What is the key feature of a lump-sum tax that makes it the most efficient tax possible?

The ability-to-pay principle of taxation leads to two corollaries of equity. What are they?

In the case study 'Who Pays the Corporate Income Tax?', the text explains that the burden of the corporate income tax ultimately falls on:

What is the difference between an average tax rate and a marginal tax rate?

According to the Case Study 'Should Income or Consumption Be Taxed?', what is a major inefficiency caused by the U.S. income tax system?

What is the 'flypaper theory' of tax incidence?

Based on the 2010 data in Table 3, a single person with a taxable income of 50,000 dollars would have a marginal tax rate of:

What is the primary reason the chapter gives for the dramatic rise in the U.S. federal budget deficit in 2009?

According to Table 5, what are the two most important sources of tax revenue for state and local governments?

Which principle of taxation suggests that it is fair for a person who frequently uses a public park to pay more in taxes for park maintenance than someone who does not?

Based on Table 1, which country has a tax burden as a percentage of GDP that is higher than the United States but lower than Sweden?

The text explains that corporate profits are, in essence, taxed twice. How does this double taxation occur?

What is the primary difference between a deadweight loss and the administrative burden of a tax?

The idea that taxpayers with similar abilities to pay taxes should contribute the same amount is known as:

According to the Case Study on page 243, why might some economists prefer a consumption tax over an income tax?

What is the largest single category of spending for state and local governments, according to Table 6?

A tax on a specific good like gasoline, cigarettes, or alcoholic beverages is known as what type of tax?

The case study 'The Fiscal Challenge Ahead' identifies two main long-term pressures on the U.S. federal budget. What are they?

If a government taxes income at 20 percent for the first 50,000 dollars and 50 percent for all income above 50,000 dollars, what is the average tax rate for a person earning 60,000 dollars?

Which of the Ten Principles of Economics is most relevant for understanding why the marginal tax rate, rather than the average tax rate, determines the deadweight loss of an income tax?

In the context of the federal budget, what is the difference between a budget deficit and a budget surplus?

What is a transfer payment, as defined in the chapter?

According to Table 8, which income quintile in the U.S. in 2006 earned 55.7 percent of all income?

The chapter notes that the trade-off between equity and efficiency in taxation is an example of which of the Ten Principles of Economics?

In the discussion of vertical equity, a tax system where all taxpayers pay 25 percent of their income in taxes would be classified as: