Explain what kind of income tax structure wealthy people would most likely prefer. Do poor people share
their preferences? Explain.
7. The Social Security tax is structured as a percent tax on earnings up to a maximum income level. Income
above that level is not subject to a social security tax. Is Social Security a progressive, proportional, or
regressive tax structure? Explain.
8. What reasons can you suggest for arguing that the federal government, unlike individuals, need never run a
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