To raise revenue for government spending

To redistribute income from the rich to the poor

To regulate the economy

To promote economic growth

Income tax

Sales tax

Property tax

Value-added tax (VAT)

Income tax

Sales tax

Property tax

Flat tax

Income tax

Sales tax

Property tax

Flat tax

A graph that shows the relationship between tax rates and tax revenue

A graph that shows the relationship between government spending and economic growth

A graph that shows the relationship between inflation and unemployment

A graph that shows the relationship between interest rates and economic growth

The level of taxation that maximizes tax revenue

The level of taxation that minimizes the deadweight loss of taxation

The level of taxation that is fair and equitable

The level of taxation that is necessary to fund government spending

To raise revenue for government spending

To redistribute income from the rich to the poor

To regulate the economy

To promote economic growth

Deductions

Exclusions

Credits

All of the above

A deduction reduces taxable income, while a credit reduces taxes owed

A deduction is a percentage of income, while a credit is a dollar-for-dollar reduction in taxes owed

A deduction is only available to individuals, while a credit is available to both individuals and businesses

A deduction is only available for certain types of expenses, while a credit is available for a wider range of expenses

To ensure that everyone pays the same amount of taxes

To ensure that higher-income earners pay a higher percentage of their income in taxes

To ensure that lower-income earners pay a lower percentage of their income in taxes

To ensure that the tax system is fair and equitable

A tax loophole is a legal way to reduce taxes, while a tax avoidance strategy is an illegal way to reduce taxes

A tax loophole is a way to reduce taxes that is not available to everyone, while a tax avoidance strategy is a way to reduce taxes that is available to everyone

A tax loophole is a way to reduce taxes that is not intended by the tax law, while a tax avoidance strategy is a way to reduce taxes that is intended by the tax law

A tax loophole is a way to reduce taxes that is only available to businesses, while a tax avoidance strategy is a way to reduce taxes that is only available to individuals

A tax haven is a country with low taxes, while a tax shelter is a legal way to reduce taxes

A tax haven is a country with no taxes, while a tax shelter is a way to reduce taxes that is not available to everyone

A tax haven is a country with high taxes, while a tax shelter is a way to reduce taxes that is available to everyone

A tax haven is a country with no taxes, while a tax shelter is a legal way to reduce taxes

A tax refund is a payment from the government to a taxpayer, while a tax credit is a reduction in the amount of taxes that a taxpayer owes

A tax refund is a payment from the government to a taxpayer, while a tax credit is a reduction in the amount of taxable income that a taxpayer has

A tax refund is a payment from the government to a taxpayer, while a tax credit is a reduction in the amount of taxes that a taxpayer has to pay

A tax refund is a payment from the government to a taxpayer, while a tax credit is a reduction in the amount of taxes that a taxpayer has to file

A tax deduction reduces taxable income, while a tax exemption reduces taxes owed

A tax deduction is a percentage of income, while a tax exemption is a dollar-for-dollar reduction in taxes owed

A tax deduction is only available to individuals, while a tax exemption is available to both individuals and businesses

A tax deduction is only available for certain types of expenses, while a tax exemption is available for a wider range of expenses