If the Government Were to Impose a Tax That Assigned

question 515

Multiple Choice

If the government were to impose a tax that assigned everyone the same tax liability, it would be

• A)a lump-sum tax.
• B)an equitable tax.
• C)supported by the poor.
• D)a progressive tax.

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Definitions:

Federal Income Tax

A tax levied by the Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholding Allowance

A predetermined amount of pre-tax income exempt from federal income taxes, directly affecting the amount of tax withheld from an employee's paycheck.

Withholding Allowances

Designations that individuals can claim to reduce the amount of their income that is withheld for tax purposes, affecting the size of their paychecks and yearly tax liabilities.

Form W-4

A tax form used by employees to tell employers how much tax to withhold from their paycheck.