One of the Foundational Principles of the United States Is

question 47

Multiple Choice

One of the foundational principles of the United States is the idea of free markets and individuals working hard towards their own success. The 2008 financial crisis and success of Bernie Sanders in the 2016 Democratic presidential primaries caused concerns that ______.

• A) America would no longer be a global superpower
• B) interest groups would exert undue influence on politics
• C) heightened partisan attitudes would cause crippling gridlock
• D) the American brand of capitalism is on the decline

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Definitions:

Marginal Tax Rate

The percentage of each additional dollar of income that goes to the tax.

Regressive

A term used to describe a tax system in which the tax rate decreases as the taxpayer's income increases, placing a larger burden on lower-income earners.

Ability-to-Pay Principle

A taxation principle that argues taxes should be levied according to an individual's or entity's capability to bear the tax burden.

Income Taxes

Taxes levied by governments on individuals or corporations' income, where the tax rate may increase as the taxable amount increases.