Chapter 7: Problem 4

Which is the most accurate statement? (LO5) a) The rich pay most of the federal personal income tax. b) President George W. Bush raised taxes that the poor must pay. c) As a result of the events of \(9 / 11\), Americans are very supportive of tax cuts. d) Government spending on defense declined between 2001 and \(2006 .\)

Short Answer

Expert verified

The most accurate statement is Option a: The rich pay most of the federal personal income tax. This is because the tax system is progressive, with the rich paying a higher percentage of their income than the poor, and contributing a larger share of total personal income tax revenue.

Step by step solution

Analyse each option

The student needs to think about the implications of each statement and evaluate its accuracy. This may require some knowledge of history, politics, and economics.

Option a: The rich pay most of the federal personal income tax.

This statement may be accurate if the tax system is progressive, meaning the rich pay a higher percentage of their income than the poor. To evaluate this statement, the student might consider how tax rates change depending on income levels and whether the rich contribute a larger share of total personal income tax revenue.

Option b: President George W. Bush raised taxes that the poor must pay.

To evaluate this statement, the student must consider the tax policies implemented during President George W. Bush's administration. If his administration enacted policies that raised taxes specifically on lower income individuals, then this statement may be accurate.

Option c: As a result of the events of 9/11, Americans are very supportive of tax cuts.

This statement suggests that due to the events of 9/11, there is a direct correlation with Americans' support of tax cuts. To evaluate this statement, the student might consider the political climate and public opinion surrounding taxes during and after 9/11, and whether tax cuts were a priority for most Americans.

Option d: Government spending on defense declined between 2001 and 2006.

To evaluate this statement, the student should consider the historical context surrounding defense spending between these years, noting any significant changes in spending that occurred during this time. If defense spending declined during these years, then this statement would be accurate.

Choose the most accurate statement

After analyzing each statement, the student must determine which one is the most accurate in the context of historical events and political policies. The student should choose the statement that is most strongly supported by evidence and context.