Question

The current United States individual income tax, not including the tax deductions, is a:

progressive tax.

proportional tax.

regressive tax.

flat tax.

We can probably never eliminate poverty completely. However, the following are common ways to help avoid poverty, except one. According to our text, which of these is NOT a common factor in reducing a person's chances to become poor?

Become a home owner.

Live a healthy lifestyle.

Learn a trade.

Invest wisely and borrow wisely.

All of the above are factors that the CD states as helping to avoid poverty.

Answer 1

Question 1

In the United States, as income of a person increases, his or her tax liability also increases.

When the tax liability increases as income increases, the tax system is said to be progressive.

So,

The current United States individual income tax, not including the tax deductions, is a progressive tax.

Hence, the correct answer is the option (1).

Question 2

Home ownership does not result in avoidance of poverty.

Fall in value of home can make a person poor or excessive mortgage payments can bring poverty.

Hence, the correct answer is the option (1).