i.e., as taxable purchases increase, the sales tax rate (i.e., the marginal tax rate) remains
Nonetheless, when you consider that the proportion of one’s total income spent
on taxable purchases likely decreases as total income increases, the sales tax may be
considered a regressive tax.
[LO3] Arnold and Lilly have recently had a heated discussion about whether a sales tax is a
proportional tax or a regressive tax.
Lilly argues that a sales tax is regressive.
that the sales tax is a flat tax.
Who is correct?
[LO4] Which is the largest tax collected by the U.S. government?
What types of taxpayers
are subject to this tax?
[LO4] What is the tax base for the Social Security and Medicare taxes for an employee or
What is the tax base for Social Security and Medicare taxes for a self-employed
Is the self-employment tax in addition to or in lieu of federal income tax?
[LO4] What are unemployment taxes?
[LO4] What is the distinguishing feature of an excise tax?