HiSET Social Studies Study Questions

Category - HiSET Social Studies Practice Test Quesitons

What is a flat tax?
  1. A tax where every taxpayer pays the same amount.
  2. A tax where every taxpayer pays the same percentage of her income.
  3. A tax that is the same in all 50 states.
  4. A tax that guarantees and equal distribution of wealth.
  5. A tax that cannot change over time.
Explanation
Answer: B - A flat tax is a tax where every taxpayer pays the same percentage of her income. If you had a flat tax of, say, 20%, every taxpayer would pay 20% of their income in taxes, no matter how much they made. The person who made $10,000 would pay $2000 and the person who made $100,000 would pay $20,000. There aren’t really any flat taxes in the United States. The closest is the Social Security tax because it has a flat tax up to $110,000 of income, but then there are not taxes on income above that. It isn’t really flat because someone who made $500,000 would pay the same amount of Social Security taxes as someone who made $110,000.
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