Author Question: When banks and other companies refuse to make home and small-business loans and insure property in ... (Read 64 times)

mwit1967 · **on:** Jul 2, 2018

When banks and other companies refuse to make home and small-business loans and insure property in poor and minority neighborhoods, it is called __________.

A) gentrification
B) White flight
C) warehousing
D) redlining

Question 2

Identify and describe the reasons why Social Security is considered to be a regressive tax.

What will be an ideal response?

lorealeza · **Reply #1 on:** Jul 2, 2018

Answer to Question 1

Answer: D

Answer to Question 2

Ideal Answer: The ideal answer should include:
1. Describe ways in which the Social Security system is financed through taxes on wages and salaries.
2. Illustrate how the rate of the tax is capped after a certain amount.
3. Describe that the method of financing Social Security is not equitable because it disproportionately disadvantages lower-income wage earners.
4. Close with a discussion of how the process takes a larger percentage from people with the lowest incomes because it applies to wages and salaries, thus exempting income that is typical of wealthy individuals. For instance, with the 2012 ceiling cap of 110,100 a worker making 110,100 and an executive making 5 million for salary paid exactly the same Social Security tax.