28. Which tax system requires all taxpayers to pay the same percentage of their income in taxes? a. a regressive tax b. a proportional tax c. a progressive tax d. a horizontal equity tax 29. If a tax takes a constant fraction of income as income rises it is a. regressive. b. proportional. c. progressive. d. based on the ability-to-pay principle. 30. An income tax in which the average tax rate is the same for all taxpayers would be considered a a. progressive tax. b. regressive tax. c. distortion-free tax. d. proportional tax. 31. Which of the following statements is correct? a. Vertical equity is the idea that taxpayers with similar abilities to pay taxes should pay the same amount. b. Horizontal equity is the idea that taxes should be levied on a person according to how well that person can shoulder the burden. c. A regressive tax would mean that high-income tax payers pay a larger fraction of their income in taxes than would low-income taxpayers. d. A proportional tax would mean that high-income and low-income taxpayers pay the same fraction of income in taxes. 32. When the marginal tax rate equals the average tax rate the tax is a. proportional. b. progressive. c. regressive. d. egalitarian. 33. Which tax system requires higher-income taxpayers to have lower tax rates even though they pay a larger amount of tax when compared to lower-income taxpayers? a. a proportional tax b. a progressive tax c. a regressive tax d. a lump-sum tax 34. If a tax takes a smaller fraction of income as income rises it is a. proportional. b. regressive. c. progressive. d. based on the ability-to-pay principle. 35. Which of the following statements is correct? a. A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers. b. A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers. c. A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers. d. A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers. 36. Which tax system requires higher-income taxpayers to pay a higher percentage of their income in taxes? a. a progressive tax b. a proportional tax c. a regressive tax d. a lump-sum tax 37. You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) two people with the same total income would pay taxes of the same amount and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following tax systems could achieve both goals? a. a lump-sum tax b. a regressive tax c. a progressive tax d. a proportional tax
