Question

question 7 (1 point)
the highest tax percentage rate for the top income bracket
o a occurred during wwii.
o b occurred during wwi and again in the early 1930s
o c is set by the constitution.
o d has always been under the 50 percent tax rate

question 8 (1 point)
if income tax laws were simplified by reducing the number of brackets while keeping the rates the same,
o a the result would be a less progressive tax structure.
o b the result would be a more progressive tax structure.
o c it would be more difficult to file a return.
o d the ability - to - pay principle would be reinforced.

Explanation:

• Question 7:
• During World War I, the top - income bracket tax rate was increased significantly. In the early 1930s (due to the Great Depression and New Deal efforts to raise revenue and redistribute wealth), high tax rates on the top income bracket were also in place.
• The Constitution does not set specific tax rates (it gives Congress the power to tax). And the top - income bracket tax rate has not always been under 50% (for example, in the mid - 20th century, it was much higher).
• Question 8:
• A progressive tax structure has different brackets where higher incomes are taxed at higher rates. If the number of brackets is reduced while keeping the rates the same, there is less differentiation in the tax treatment of different income levels. For example, if there were originally 10 brackets and now there are 5, a person with a slightly higher income may not move to a much higher - rate bracket as easily as before. This makes the tax structure less progressive. Simplifying the brackets (reducing their number) would make filing easier (contrary to option c). Reducing brackets while keeping rates the same does not reinforce the ability - to - pay principle (which is about higher - income people paying more in tax relative to their income), because the nuanced relationship between income levels and rate changes is reduced.

Answer:

• Question 7: B. occurred during WWI and again in the early 1930s
• Question 8: A. the result would be a less progressive tax structure.