Exam 17: Taxation and Resource Allocation

Figure 18-3 -In 1984, the South Carolina State Supreme Court ruled that a 20 percent admission tax on X-rated movies was unconstitutional.When the affected cinemas sought a refund of collected taxes, they were denied on the grounds that the tax, although collected by the theater, was indeed paid by the theatergoers.The Supreme Court apparently believed

The second largest source of income for the federal budget is

If Bob is taxed for each soda he buys, he faces a direct tax.

The way in which most persons pay their personal income tax is in the form of

Faced with a shortage of funds to pay claims, the workman's compensation systems in many states have been forced to raise the workman's compensation tax rate substantially.The tax is paid by employers.Employers have complained that they cannot afford the tax and threaten to go out of business.Assuming the supply of labor is very inelastic, one can argue that ultimately the burden of this tax actually will rest

If a corporation earns $1 million in revenues on $750,000 in expenses, including $415,000 from payrolls, and the corporate tax rate is 10 percent with a $100,000 exemption, then the corporate taxes would be

In 2005, the median income of renters was $26,317 and the median income of homeowners was $50,505.If imputed rent were added to household income or rent became deductible, the personal income tax would become

A regressive tax is one in which the average tax rate falls as income rises.

Social Security benefits funded by from dividends from the Social Security Trust Fund.

In the area of taxation, the trade-off between equity and efficiency

What is the controversy surrounding property taxes as a source for school funding?

Most loopholes in the income tax system

If Hermione pays $10.00 in taxes on $100 of income and $10.25 on $101 of income, which of the following is not true?

Which of the following taxes is least likely to be shifted?

Vertical equity refers to the notion that equally situated individuals should be taxed equally.

Since World War II, the share of corporate income tax collections in total federal revenue has been

One major tax loophole intended to help state & local governments raise funds is

Federal, state, and local taxes

The main difference between direct and indirect taxes is that

The incidence of a payroll tax is borne by both employers and employees.