The Ultimate Flat and Fair Tax Quiz

By: Staff

4 Min Quiz

An alternative to the current United States tax code is:

Two popular alternatives to the current United States tax code are the flat tax and the FairTax.

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Which candidate supported the flat tax in the 2000 presidential election?

Green Party candidate Ralph Nader supported the flat tax during the 2000 presidential campaign. During the 2008 campaign, Republican Mike Huckabee supported the FairTax.

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Which of the following factors contributes to the fact that the present tax code is considered confusing for average citizens?

The complexity of the current U.S. tax code may contribute to honest mistakes in tax return filings, and may also encourage tax evasions.

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Critics of the current progressive income tax system feel that it puts an excessive burden on:

Critics of the current tax system feel that not only does it place an unfair burden on the wealthy, it actually discourages economic activity that would benefit the entire economy in the long run.

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The Fair Tax would tax:

The Fair Tax would not tax income; it plans to institute a national sales tax to raise the money collected through income tax at present. Some states, like New York, Florida and New Jersey already have a sales tax.

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The flat tax would tax:

The flat tax would tax all income at 17 percent and do away with the exemptions, loopholes and deductions -- with the possible exception of a family deduction -- that complicate the current system.

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The group, Americans for Fair Taxation, sought to develop a plan for a better:

The original proponents of the Fair Tax are a group called Americans for Fair Taxation, which enlisted the advice of economists and focus groups to develop a plan for a better system of taxation. Their plan is explained in "The FairTax Book" by Neal Boortz.

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The Fair Tax would institute a national sales tax on consumer goods. The monthly check that would be sent by the government to defray taxes on necessities is:

To ensure that "no American pays tax on necessities," the Fair Tax provides for a monthly check called a prebate that would help families defray the sales tax charged for necessities.

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Supporters of the flat tax and the FairTax claim their plan will promote:

Supporters of both the flat tax and the FairTax claim their innovative plans will promote economic growth by abolishing the taxes that discourage productive economic activity like saving, investing and job creation.

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Under the Fair Tax system of taxation, the Internal Revenue Service (IRS) would play _____ role.

Since the FairTax would eliminate Federal income and corporate taxes, the Internal Revenue Service would no longer have any role in collecting taxes. A new service would need to be created to collect the national sales tax that the plan would institute.

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About This Quiz

Critics of the current United States tax code are many and vocal. Two popular alternatives to the current tax code are the flat tax and the Fair Tax. The idea of a flat tax has been around for many years, whereas the Fair Tax is a new concept, proposed in the 1990s. Take our flat tax-fair tax quiz and learn all about them.

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