Which of the tables accurately describes the various tax types and how revenues are used for the public good?(1 point)

Question

(a) type of Tax Description Revenue Use For Public Good
Regressive Tax An estate tax based on a percentage of the estate’s value Social Security and Medicare
Progressive Tax A tax where all levels of yearly income are taxed at the same rate Funding police and fire departments, and maintaining roads and schools
Proportional Tax A tax based on the taxpayer’s ability to pay where higher tax rates apply to higher levels of income and a lower tax rate on lower-income earners Military and veteran services

(b) Type of Tax Description Revenue Use For Public Good
Regressive Tax A tax based on the taxpayer’s ability to pay where higher tax rates apply to higher levels of income and a lower tax rate on lower-income earners Social Security and Medicare
Progressive Tax A tax that does not change based on the taxpayer’s level of income Funding police and fire departments, and maintaining roads and schools
Proportional Tax A tax where all levels of yearly income are taxed at the same rate Military and veteran services

(c) Type of Tax Description Revenue Use For Public Good
Regressive Tax A tax that does not change based on the taxpayer’s level of income Social Security and Medicare
Progressive Tax A tax based on the taxpayer's ability to pay where higher tax rates apply to higher levels of income and a lower tax rate on lower-income earners Funding police and fire departments, and maintaining roads and schools
Proportional Tax A tax where all levels of yearly income are taxed at the same rate Military and veteran services

(d)Type of Tax Description Revenue Use For Public Good
Regressive Tax A tax where all levels of yearly income are taxed at the same rate Social Security and Medicare
Progressive Tax A tax that does not change based on the taxpayer’s level of income Funding police and fire departments, and maintaining roads and schools
Proportional Tax A sales tax based on a percentage of a consumer good Military and veteran services

Answer 1

To determine which of the provided options accurately describes the various tax types and their uses for public good, let's clarify the definitions of these tax types:

1. Regressive Tax: A tax that takes a higher percentage of income from low-income earners than from high-income earners, often applying the same tax rate regardless of income (e.g., sales tax).

2. Progressive Tax: A tax system where the tax rate increases as income increases, meaning higher earners pay a higher percentage of their income in taxes (e.g., income tax).

3. Proportional Tax: A tax where all taxpayers pay the same percentage of their income, regardless of their income level.

Now, let's assess each of the provided options:

(a)

• Regressive Tax: Incorrect description.
• Progressive Tax: Incorrect description.
• Proportional Tax: Incorrect description.

(b)

• Regressive Tax: Incorrect description.
• Progressive Tax: Incorrect description.
• Proportional Tax: Incorrect description.

(c)

• Regressive Tax: Correct description (though it should be referred to as a tax that takes a higher percentage from lower incomes, not "does not change").
• Progressive Tax: Correct description.
• Proportional Tax: Incorrect description of the term.

(d)

• Regressive Tax: Incorrect description.
• Progressive Tax: Incorrect description.
• Proportional Tax: Incorrect description.

Based on the above evaluations, none of the tables provide accurate definitions and characteristics of each tax type correctly. However, (c) comes closest because it correctly describes the progressive tax.

In conclusion, none of the tables accurately describe both the various tax types and their revenue use for public good in a fully correct manner. If one had to choose the least incorrect, it would be (c) due to its correct definitions of progressive tax.