Exam 1: An Introduction to Tax

Curtis invests $250,000 in a city of Athens bond that pays 7% interest. Alternatively, Curtis could have invested the $250,000 in a bond recently issued by Initech, Inc. that pays 9% interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24%. How much explicit tax would Curtis incur on interest earned on the Initech, Inc. bond?

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 2018, his marginal tax rate (rounded) on the deductions would be: (Use tax rate schedule)

The state of Georgia recently increased its tax on a carton of cigarettes by $2.00. What type of tax is this?

Consider the following tax rate structure. Is it horizontally equitable? Why or why not? Is it vertically equitable? Why or why not?

Curtis invests $250,000 in a city of Athens bond that pays 7% interest. Alternatively, Curtis could have invested the $250,000 in a bond recently issued by Initech, Inc. that pays 9% interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24%. How much implicit tax would Curtis pay on the city of Athens bond?

The largest federal tax, in terms of revenue collected, is the social security tax.

Tax policy rarely plays an important part in presidential campaigns.

Which of the following federal government actions would make sense if a tax system fails to provide sufficient tax revenue?

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. What is Leonardo and Theresa's effective tax rate for year 2018 (rounded)? (Use tax rate schedule)".

If Susie earns $750,000 in taxable income, how much tax will she pay as a single taxpayer for year 2018? (Use tax rate schedule)

Which of the following principles encourages a vertically equitable tax system?

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

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 earned an additional $30,000 of taxable income this year, what would be the marginal tax rate (rounded) on the extra income for year 2018? (Use tax rate schedule)