Deck 9: Tax Policy and Income Distribution

Question 1

If you believe that unregulated capitalism skews the distribution of resources and opportunities leaving subgroups vulnerable to income,employment and health
Insecurity,then you are probably:

A)a traditional conservative.
B)a libertarian.
C)a progressive.
D)a Tea Partier

Answer 1

C

Question 2

How does Harry Hopkins saying "Tax,tax;spend,spend;elect,elect!" apply to contemporary political debates in America?

Answer 2

no answer

Question 3

With so much political pressure at the federal level to balance the budget,direct income transfers to the poor,a discretionary federal program,are likely to be in
Danger.As a social activist,what alternative federal mechanism would you advocate
To replace direct income transfers?

A)in-kind benefits.
B)the Supplemental Nutritional Assistance Program.
C)self-help groups.
D)refundable tax expenditures.

Answer 3

C

Question 4

What are the advantages and disadvantages of converting anti-poverty programs to tax expenditures instead of direct welfare benefits?

Question 5

How does tax law affect the revenues of nonprofit organizations?

Question 6

If you qualify for food assistance and receive an Earned Income Tax refund from the federal government each year,you are most likely to be:

A)a senior living on Social Security.
B)an employed single parent with children.
C)unemployed.
D)a college student.

Question 7

What is the most challenging aspect of alleviating poverty through refundable tax expenditures?

A)budgetary constraints on tax expenditures.
B)annual competition for Congressional allocations to fund tax expenditures.
C)protecting low-income people from predatory tax return preparation services.
D)educating low income people about how to obtain the refunds.

Question 8

What do the three tax policies that have been central to U.S.social policy have in common?

A)All three have increased over time.
B)All three are progressive.
C)All three are regressive.
D)All three were enacted to fund social programs.

Question 9

Regardless of your household income,if you owe more money than you have managed to accumulate in assets,then you are most likely to be:

A)unemployed.
B)underemployed.
C)working part-time.
D)asset poor.

Question 10

From a progressive perspective,what argument of the anti-tax movement is likely to be most persuasive?

A)Public programs cannot be trusted.
B)Public programs are not effective.
C)As a group,the top quintile already pays a larger proportion of federal taxes than their proportion of national income.
D)Public programs interfere with the efficient operation of the free market.

Question 11

Corporate welfare is most egregious in which federal department?

A)Department of Energy
B)Department of Defense
C)Department of Agriculture
D)Department of Housing and Urban Development

Question 12

State and local taxes in the United States are noted for being regressive (i.e. ,heavily based on sales taxes),asset-based (e.g. ,property taxes),and:

A)uniformly progressive (income taxes).
B)careful to avoid punitive effects on lower income strata.
C)almost wildly inconsistent from state to state.
D)more evenly balanced than federal taxes.

Question 13

Progressive taxation:

A)collects a larger share of income from people with high incomes than from low incomes in the form of taxes.
B)was a temporary experiment during the 1930s that has since been discontinued.
C)has been supported by traditional conservatives since the colonial period in America.
D)was a campaign pledge by Reagan that helped him win the presidency in 1980.

Question 14

An example of a targeted tax expenditure is:

A)charitable contributions.
B)home interest.
C)the Hope learning credit.
D)tax-deferred savings programs.

Question 15

A conservative is most likely to support tax increases for:

A)military expenditures.
B)income redistribution from higher earners to lower earners.
C)improvements in higher education.
D)transportation infrastructure.

Question 16

From a conservative perspective,there is an inverse relationship between taxation to support government social programs and:

A)equity.
B)autonomy.
C)opportunity.
D)efficiency.

Question 17

Does tax policy currently benefit special interest groups? Why or why not?

Question 18

Why is the refundability of a tax credit important to lower socioeconomic strata in American society?

A)These credits put money in the hands of the poor.
B)These credits increase the retirement accounts of the poor.
C)These credit reduce the income tax payments of the poor.
D)These credits are not available to the wealthy.

Question 19

If,on April 15 of each year,you file your federal income tax return with gratitude that so much misery is partially alleviated because of U.S.safety net programs,you
Are probably:

A)a traditional conservative.
B)a libertarian.
C)a progressive.
D)a Tea Partier.

Question 20

What factors account for the low tax rate in the United States compared to other OECD (Organization for Economic Cooperation and Development)nations?