Question 1

Which of the following statements concerning income tax rate structures is false?

Accepted Answer

A)  Under a progressive rate structure, the marginal rate and the average rate are equal. 
B)  Under a regressive rate structure, the average rate for low-income individuals is more than the average rate for high-income individuals. 
C)  Under either a regressive, proportionate, or progressive rate structure, high-income taxpayers pay more dollars of tax than low-income individuals. 
D)  In theory, a progressive rate structure results in equal economic sacrifice across taxpayers. 
A)  Under a progressive rate structure, the marginal rate and the average rate are equal. 
B)  Under a regressive rate structure, the average rate for low-income individuals is more than the average rate for high-income individuals. 
C)  Under either a regressive, proportionate, or progressive rate structure, high-income taxpayers pay more dollars of tax than low-income individuals. 
D)  In theory, a progressive rate structure results in equal economic sacrifice across taxpayers.

Question 2

The city of Belleview operated at an $865,000 surplus this year. The surplus suggests that the municipal tax system is:

Accepted Answer

A)  Fair 
B)  Efficient 
C)  Sufficient 
D)  Convenient 
A)  Fair 
B)  Efficient 
C)  Sufficient 
D)  Convenient

Question 3

The statement that "an old tax is a good tax" means that:

Accepted Answer

A)  Changes in the tax law create uncertainty in the business environment. 
B)  Changes in the tax law disrupt traditional planning strategies. 
C)  Changes in the tax law increase the compliance burden on businesses. 
D)  All of the above. 
A)  Changes in the tax law create uncertainty in the business environment. 
B)  Changes in the tax law disrupt traditional planning strategies. 
C)  Changes in the tax law increase the compliance burden on businesses. 
D)  All of the above.

Question 4

If a tax has a proportionate rate structure, a taxpayer's marginal rate and average rate are equal.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about a progressive tax rate structure is false?

Accepted Answer

A)  Progressive rates increase as the tax base increases. 
B)  Progressive rates reflect the theory of the declining marginal utility of income. 
C)  The federal income tax has always used a progressive rate structure. 
D)  Progressive rates result in greater vertical equity than a proportionate rate. 
A)  Progressive rates increase as the tax base increases. 
B)  Progressive rates reflect the theory of the declining marginal utility of income. 
C)  The federal income tax has always used a progressive rate structure. 
D)  Progressive rates result in greater vertical equity than a proportionate rate.

Which of the following statements concerning income tax rate structures is false?

The city of Belleview operated at an $865,000 surplus this year. The surplus suggests that the municipal tax system is:

The statement that "an old tax is a good tax" means that:

If a tax has a proportionate rate structure, a taxpayer's marginal rate and average rate are equal.

Which of the following statements about a progressive tax rate structure is false?

Taxes and Taxing Jurisdictions

Taxes as Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income from Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters

Exam 2: Policy Standards for a Good Tax

Which of the following statements concerning income tax rate structures is false?

The city of Belleview operated at an $865,000 surplus this year. The surplus suggests that the municipal tax system is:

The statement that "an old tax is a good tax" means that:

If a tax has a proportionate rate structure, a taxpayer's marginal rate and average rate are equal.

Which of the following statements about a progressive tax rate structure is false?

Taxes and Taxing Jurisdictions

Taxes as Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income from Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters