Identify a true statement about the tax system in the United States.
A) The Tax Reform Act of 1986 was intended to lower taxes and simplify the tax code and it did just that for most taxpayers.
B) A few years after the Tax Reform Act of 1986 was passed, large federal deficits forced Congress to cut spending.
C) Those affected by the Tax Reform Act of 1986 lobbied Congress to legislate special exceptions so that the full impact of the tax rate increase would be felt by the wealthiest Americans.
D) Tax cuts occurred under the administrations of both George H. W. Bush (1989-1993 ) and Bill Clinton (1993-2001).
E) The tax rate for the highest income bracket decreased from 39.6 percent in 1986 to 28 percent in 1993.
Question 2
Identify a true statement about an entitlement program.
A) An entitlement program needs to be renewed every year only if Congress passes an annual funding measure.
B) Congress has direct control over how much an entitlement program will cost in any particular year.
C) It is impossible to estimate the costs of an entitlement program.
D) An entitlement program is invariably the same as a discretionary spending.
E) An entitlement program pays out benefits to persons who meet specified requirements.
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