Question 1

A static forecast of the incremental revenue from a tax rate increase presumes that:

Accepted Answer

A) The tax base will not change because of the rate increase. 
B) The tax base will increase by the same proportion as the rate increase. 
C) The tax base will decrease by the same proportion as the rate increase. 
D) The tax rate and the tax base are correlated. 
A) The tax base will not change because of the rate increase. 
B) The tax base will increase by the same proportion as the rate increase. 
C) The tax base will decrease by the same proportion as the rate increase. 
D) The tax rate and the tax base are correlated.

Question 2

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

Accepted Answer

A) A regressive rate structure cannot result in vertical equity. 
B) Regressive rates decrease as the tax base increases. 
C) A regressive rate structure places a proportionally heavier tax burden on taxpayers with smaller tax bases than persons with greater tax bases. 
D) None of the above is false. 
A) A regressive rate structure cannot result in vertical equity. 
B) Regressive rates decrease as the tax base increases. 
C) A regressive rate structure places a proportionally heavier tax burden on taxpayers with smaller tax bases than persons with greater tax bases. 
D) None of the above is false.

Question 3

Government officials of Country Z estimate that next year's public programs will cost $19 million but that tax revenues will be only $15 million.The officials could avoid a deficit next year by adopting which of the following fiscal strategies?

Accepted Answer

A) Reduce the cost of public programs by $4 million. 
B) Increase taxes by $4 million. 
C) Borrow $4 million by issuing new government bonds. 
D) All of these strategies will avoid a deficit. 
A) Reduce the cost of public programs by $4 million. 
B) Increase taxes by $4 million. 
C) Borrow $4 million by issuing new government bonds. 
D) All of these strategies will avoid a deficit.

Question 4

A tax should result in either horizontal or vertical equity across taxpayers.

Accepted Answer

A) True 
 B)False

Question 5

State use taxes are more convenient for individual consumers than state sales taxes.

Accepted Answer

A) True 
 B)False

A static forecast of the incremental revenue from a tax rate increase presumes that:

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

Government officials of Country Z estimate that next year's public programs will cost $19 million but that tax revenues will be only $15 million.The officials could avoid a deficit next year by adopting which of the following fiscal strategies?

A tax should result in either horizontal or vertical equity across taxpayers.

State use taxes are more convenient for individual consumers than state sales taxes.

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, Partnerships, llcs, and S Corporations

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

A static forecast of the incremental revenue from a tax rate increase presumes that:

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

Government officials of Country Z estimate that next year's public programs will cost $19 million but that tax revenues will be only $15 million.The officials could avoid a deficit next year by adopting which of the following fiscal strategies?

A tax should result in either horizontal or vertical equity across taxpayers.

State use taxes are more convenient for individual consumers than state sales taxes.

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, Partnerships, llcs, and S Corporations

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