The Unfunded Mandate Reform Act (UMRA) Limits the Number of Unfunded

question 65

True/False

The Unfunded Mandate Reform Act (UMRA) limits the number of unfunded mandates Congress may place on states in a given year.

---

Definitions:

Marginal Tax Rate

The rate at which your last dollar of income is taxed, reflecting the tax bracket your highest dollars of income fall into.

Average Tax Rate

The portion of total income that is paid as tax, calculated by dividing the total amount of taxes paid by the taxpayer’s total income.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a taxing authority.

Regressive

Pertains to a situation or policy that has a disproportionately greater impact on those with lower income or status.