Ch.9 Reading questions

Heavier tax burdens upon the wealthy are usually defended on the principle of

• fairest of the unfair.

• pay now or later.

• ability to pay.

• least painful.

ability to pay.

Income tax rates that decrease with increases in income are known as

• flat.

• progressive.

• proportional.

• regressive.

regressive

Tax burden refers to

• deductions for the wealthy.

• who pays the most in taxes.

• how much tax revenue the state must contribute to the federal government.

• the proportion of taxes paid in relation to personal income.

the proportion of taxes paid in relation to personal income.

Sales taxes on fuel, alcohol, and tobacco products are also known as ______ taxes.

• flat sales

• severance

• turnover

• excise

excise

_______ between governments, usually from higher levels of government to lower levels, are essential and influential

sources of revenue for state and local governments.

• Lotteries

• Taxes

• Grants

• Sales

Grants

State and local governments get most of their money from

• outsourcing

• taxes

• interest group donations

• cost of living adjustments

taxes

Property tax exemptions are most often used as an inducement to encourage _______ to relocate to a certain area.

• religious organizations

• business and industries

• charitable organizations

• educational facilities

business and industries

The costliest public assistance program in the states is

• Medicaid

• the State Children's Health Insurance Program.

• Medicare.

• managed care.

Medicaid

Which of the following statements is true of funding higher education?

• States are not making any efforts to expand their programs of student aid.

• State funding of public colleges and universities is generally stable.

• Professors' salaries in universities have kept pace with increasing tuition.

• The federal government is the chief supplier of student financial aid.

The federal government is the chief supplier of student financial aid.

Which of the following is true of Temporary Assistance for Needy Families (TANF)?

• States under TANF are given lesser flexibility in administering welfare policies.

• States under TANF have to spend most of their welfare dollars on monthly cash payments to families.

• It was replaced by the 60-year-old program known as Aid to Families with Dependent Children.

• It strengthened work requirements for recipients and limited the time that families can receive benefits.

It strengthened work requirements for recipients and limited the time that families can receive benefits.