Praxis II Citizenship

Category - Economics

What is NOT a factor in determining which poverty threshold applies to a U.S. citizen?
  1. Age.
  2. Family size.
  3. Social Security income.
  4. Income tax rate.
Explanation
Answer: D - A citizen’s income tax rate does not affect his poverty status. The Census Bureau can assign a U.S. citizen one of 48 poverty thresholds depending on his age, the number of family members with whom he resides, and his earnings and supplemental income (such as Social Security, alimony, child support, interest, etc.). Poverty status is assessed before taxes, so his income tax rate does not affect which poverty threshold he is assigned. The poverty thresholds were originally assigned in 1963-1964, and they are adjusted annually to reflect inflation.
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