Exam 1: An Introduction to Tax

The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________.

Which of the following is true regarding tax-advantaged assets?

Taxes influence which of the following decisions?

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo instead had $30,000 of additional tax deductions for year 2016, his marginal tax rate (rounded) on the deductions would be:

To calculate a tax, you need to know: I. the tax base II) the taxing agency III) the tax rate IV) the purpose of the tax

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

The tax base for the federal income tax is taxable income.

Property taxes may be imposed on both real and personal property.

The 9^th Amendment to the U.S. Constitution removed all doubt that a federal income tax was allowed under the U.S. Constitution.

Which of the following is false?

Margaret recently received a parking ticket. This is a common example of a local tax.

A common example of an employment related tax is the Medicare tax.

Which of the following is a tax? I. A 1% special sales tax for funding local road construction. II) A fee paid to the state for a license to practice as an attorney. III) An income tax imposed by Philadelphia on persons working within the city limits. IV) A special property assessment for installing a new water system in the taxpayer's neighborhood.

A use tax is typically imposed by a state on goods purchased within the state.

Oswald is beginning his first tax course and does not really have a solid understanding of the role that taxes play in various decisions. Please describe for Oswald the various types of decisions that taxes may influence.

Sin taxes are:

Geronimo files his tax return as a head of household for year 2016. If his taxable income is $72,000, what is his average tax rate (rounded)?

Raquel recently overheard two journalism students discussing the merits of the federal tax system. One student offered as an example of unfairness the spouse of a well-known politician who paid little income tax as most of the spouse's income was earned in the form of municipal bond interest. What type of taxes is the journalism student considering in his example? What type of taxes is he ignoring? Define each type of tax. What role does each type of tax play in calculating relative tax burdens? What role does each type of tax play in evaluating fairness?

While sales taxes are quite common, currently the U.S. federal government does not impose a sales tax.

Which of the following statements is true?