How Has the Share of the Personal Income Tax Paid

question 248

Multiple Choice

How has the share of the personal income tax paid by the rich (the top 1 percent of earners) and the not-so-well-off (the bottom half of earners) changed during the last four decades?

• A) The rich now pay a larger share and the not-so-well-off pay a smaller share of the personal income tax.
• B) The rich now pay a smaller share and the not-so-well-off pay a larger share of the personal income tax.
• C) The share of the personal income tax paid by the rich increased between 1960 and 1980, but the share of the revenues collected from the rich has declined sharply since 1980.
• D) The relative shares paid by the rich and the not-so-well-off have been virtually unchanged during the last four decades.

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Definitions:

Time Constants

A parameter that quantifies the response time of a system to a step input, notably in RC and RL circuits, characterized by the time it takes for a system to change significantly.

Electromagnetic Induction

The phenomenon where an electromotive force (EMF) is induced in a closed circuit by a change in the flux of magnetic field.

Lenz's Law

A principle in electromagnetism stating that an induced electric current will flow in a direction such that it opposes the change in magnetic flux that produced it.

Exponential Rate

A rate of growth in which the increase occurs in a manner proportional to the current amount, often seen as rapid growth.