Using Income as the Tax Base, Which of the Following

question 98

Multiple Choice

Using income as the tax base, which of the following best illustrates a regressive tax?

• A) the federal inheritance tax
• B) a 7 percent general sales tax
• C) the corporate income tax
• D) the personal income tax

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Definitions:

Pension Plans

Retirement plans that require an employer to contribute to a pool of funds set aside for an employee's future benefit.

Employee Services

Various support services provided by employers to enhance the well-being and productivity of their workforce, such as health care, counseling, and transportation.

Flexible Versus Fixed Benefits

A comparison between two types of benefits; flexible benefits can be tailored to individual needs, while fixed benefits are standardized and not changeable.

Health Care Spending Account

A tax-advantaged account that employees can use to pay for eligible health care expenses not covered by insurance.