Question 1

A sales tax is a common example of a progressive tax rate structure.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would not be a failure of the horizontal equity concept?

Accepted Answer

A) Two taxpayers with identical income pay different amounts of tax because one taxpayer's income includes tax-exempt interest. 
B) Two taxpayers pay different property tax amounts on similar plots of land (i.e., same value)because one plot of land is used to raise crops. 
C) Two taxpayers pay different amounts of estate tax because one taxpayer's estate is worth significantly more. 
D) All of the choices are correct. 
E) None of the choices are correct. 
A) Two taxpayers with identical income pay different amounts of tax because one taxpayer's income includes tax-exempt interest. 
B) Two taxpayers pay different property tax amounts on similar plots of land (i.e., same value)because one plot of land is used to raise crops. 
C) Two taxpayers pay different amounts of estate tax because one taxpayer's estate is worth significantly more. 
D) All of the choices are correct. 
E) None of the choices are correct.

Question 3

Which of the following is true regarding real property taxes and personal property taxes?

Accepted Answer

A) Personal property taxes are assessed on permanent structures and land. 
B) Real property taxes are assessed on cars and boats. 
C) All U.S.states currently impose personal property taxes. 
D) Real property taxes are generally easier to administer than personal property taxes. 
E) None of the choices are correct. 
A) Personal property taxes are assessed on permanent structures and land. 
B) Real property taxes are assessed on cars and boats. 
C) All U.S.states currently impose personal property taxes. 
D) Real property taxes are generally easier to administer than personal property taxes. 
E) None of the choices are correct.

Question 4

Excise taxes are typically levied on the value of a good purchased.

Accepted Answer

A) True 
 B)False

Question 5

Consider the following tax rate structure.Is it horizontally equitable? Why or why not? Is it vertically equitable? Why or why not?
 $$\begin{array} { | l | r | r | } 
\hline{ \text { Taxpayer } } & { \text { Salary } } & { \text { Total Tax } } \
\hline \text { Moe } & 20,000 & 1,500 \
\hline \text { Larty } & 40,000 & 8,500 \
\hline \text { Curly } & 100,000 & 25,500 \
\hline
\end{array}$$

Accepted Answer

We cannot evaluate whether the tax rate

Question 6

George recently paid $50 to renew his driver's license.The $50 payment is considered a tax.

Accepted Answer

A) True 
 B)False

Question 7

Jed Clampett is expanding his family-run beer distributorship into Georgia or Tennessee.His parents began the business many years ago and now three generations of Clampetts work in the family business.Jed will relocate the entire family (his parents, spouse, children, etc.)to either state after the move.What types of taxes may influence his decision of where to locate his business? What nontax factors may influence the decision?

Accepted Answer

Taxes will affect several aspects of Jed

Question 8

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

Accepted Answer

A) True 
 B)False

Question 9

One key characteristic of a tax is that it is a required payment to a governmental agency.

Accepted Answer

A) True 
 B)False

Question 10

Milton and Rocco are having a heated debate regarding a national sales tax.Milton argues that a national sales tax is a proportional, vertically equitable tax.Rocco argues that a national sales tax would be a regressive, vertically inequitable tax.Explain both sides of the argument.

Accepted Answer

A sales tax by definition is a proportio

Question 11

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham bonds.Using the U.S.tax rate schedule for year 2019, what is his effective tax rate (rounded)? (Round your final answer to the nearest whole percent.)(Use tax rate schedule.)

Accepted Answer

A) 20.31 percent 
B) 13.94 percent 
C) 11.75 percent 
D) 10.48 percent 
E) None of the choices are correct 
A) 20.31 percent 
B) 13.94 percent 
C) 11.75 percent 
D) 10.48 percent 
E) None of the choices are correct

Question 12

Eliminating the current system of withholding income taxes directly from employee paychecks would:

Accepted Answer

A) violate the convenience criterion of federal taxation. 
B) increase the rate of compliance. 
C) make collection of federal income taxes easier. 
D) All of the choices are correct. 
E) None of the choices are correct. 
A) violate the convenience criterion of federal taxation. 
B) increase the rate of compliance. 
C) make collection of federal income taxes easier. 
D) All of the choices are correct. 
E) None of the choices are correct.

Question 13

Which of the following represents the largest percentage of average state tax revenue?

Accepted Answer

A) Sales tax 
B) Individual income tax 
C) Other 
D) Property tax 
E) None of the choices are correct 
A) Sales tax 
B) Individual income tax 
C) Other 
D) Property tax 
E) None of the choices are correct

A sales tax is a common example of a progressive tax rate structure.

Which of the following would not be a failure of the horizontal equity concept?

Which of the following is true regarding real property taxes and personal property taxes?

Excise taxes are typically levied on the value of a good purchased.

Consider the following tax rate structure.Is it horizontally equitable? Why or why not? Is it vertically equitable? Why or why not? Taxpayer Salary Total Tax Moe 20,000 1,500 Larty 40,000 8,500 Curly 100,000 25,500

George recently paid $50 to renew his driver's license.The $50 payment is considered a tax.

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

One key characteristic of a tax is that it is a required payment to a governmental agency.

Milton and Rocco are having a heated debate regarding a national sales tax.Milton argues that a national sales tax is a proportional, vertically equitable tax.Rocco argues that a national sales tax would be a regressive, vertically inequitable tax.Explain both sides of the argument.

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham bonds.Using the U.S.tax rate schedule for year 2019, what is his effective tax rate (rounded)? (Round your final answer to the nearest whole percent.)(Use tax rate schedule.)

Eliminating the current system of withholding income taxes directly from employee paychecks would:

Which of the following represents the largest percentage of average state tax revenue?

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Filters

Exam 1: An Introduction to Tax

A sales tax is a common example of a progressive tax rate structure.

Which of the following would not be a failure of the horizontal equity concept?

Which of the following is true regarding real property taxes and personal property taxes?

Excise taxes are typically levied on the value of a good purchased.

Consider the following tax rate structure.Is it horizontally equitable? Why or why not? Is it vertically equitable? Why or why not? Taxpayer Salary Total Tax Moe 20,000 1,500 Larty 40,000 8,500 Curly 100,000 25,500

George recently paid $50 to renew his driver's license.The $50 payment is considered a tax.

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

One key characteristic of a tax is that it is a required payment to a governmental agency.

Milton and Rocco are having a heated debate regarding a national sales tax.Milton argues that a national sales tax is a proportional, vertically equitable tax.Rocco argues that a national sales tax would be a regressive, vertically inequitable tax.Explain both sides of the argument.

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham bonds.Using the U.S.tax rate schedule for year 2019, what is his effective tax rate (rounded)? (Round your final answer to the nearest whole percent.)(Use tax rate schedule.)

Eliminating the current system of withholding income taxes directly from employee paychecks would:

Which of the following represents the largest percentage of average state tax revenue?

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual From Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Filters