ECONOMICS- CHAPTER 14 NOTES WITH CORRECT ANSWERS 100% 2026

ECONOMICS- CHAPTER 14 NOTES WITH CORRECT ANSWERS 100% 2026 How is the federal government given the power to tax? - Correct Answers By the constitution What does Article I of the Constitution do? - Correct Answers It lays out the duties of Congress. What is a proportional tax? - Correct Answers A tax where everybody would pay the same tax amount. What is a progressive tax? - Correct Answers A tax where the more you earn, the higher percentage you will pay in taxes. What is a regressive tax? - Correct Answers A tax where as you get more income, the percentage you pay will be less. What are the 4 characteristics of a good tax? - Correct Answers Simplicity; Efficiency; Certainty; Equity How do you measure the fairness of a tax? - Correct Answers A person should pay taxes based on the level of benefits he or she expects to receive from the government; That people should pay taxes according to their ability to pay. What kind of tax is a sales tax? - Correct Answers Regressive because higher income households spend a lower proportion of their incomes on taxable goods and services. What is the purpose of a tax? - Correct Answers For the common defense and general welfare. Can the government tax exports? - Correct Answers No. Only imports Who bears the burden of taxes if demand is inelastic? - Correct Answers Consumers Who bears the burden of taxes if demand is elastic? - Correct Answers Producers What kind of taxes does the Federal government collect? - Correct Answers Individual income taxes; corporate income taxes; Social Security, Medicare and unemployment taxes; Excise taxes and tariffs; and Estate and gift taxes. What is the government's main source of revenue? - Correct Answers Revenue received from individual taxable income. How does an individual usually pay their income taxes? - Correct Answers They pay them throughout the year as they earn income. How do employers collect taxes from employees? - Correct Answers From withholding money from an employee's paycheck based on an estimate of how much you will owe in federal income tax for that year. When are tax returns due to the Internal Revenue Service? - Correct Answers By April 15th of each year What kind of income tax are corporate income taxes? - Correct Answers Progressive Why is it difficult to determine a corporation's taxable income? - Correct Answers Because many companies often deduct the cost of employee's health insurance as well as many other costs of doing business.