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# Federal Taxation

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## Quiz 17 : an Introduction to Taxation

A progressive tax rate structure is one where the rate of tax increases as the tax base increases.
Free
True False

True

A proportional tax rate is one where the rate of the tax is the same for all taxpayers,regardless of income levels.
Free
True False

True

The largest source of federal revenues is the corporate income tax.
Free
True False

False

Which of the following taxes is progressive?
Multiple Choice
Sarah contributes $25,000 to a church.Sarah's marginal tax rate is 35% while her average tax rate is 25%.After considering her tax savings,Sarah's contribution costs Multiple Choice Answer: Arthur pays tax of$5,000 on taxable income of $50,000 while taxpayer Barbara pays tax of$12,000 on $120,000.The tax is a Multiple Choice Answer: The federal income tax is the dominant form of taxation by the federal government. True False Answer: Which of the following taxes is regressive? Multiple Choice Answer: The Sixteenth Amendment to the U.S.Constitution permits the passage of a federal income tax law. True False Answer: Regressive tax rates decrease as the tax base increases. True False Answer: When a change in the tax law is deemed necessary by Congress,the entire Internal Revenue Code must be revised. True False Answer: Until about 100 years ago,attempts to impose a federal income tax were ruled unconstitutional.The amendment to the U.S.Constitution allowing the imposition of a federal income tax is the Multiple Choice Answer: The marginal tax rate is useful in tax planning because it measures the tax effect of a proposed transaction. True False Answer: If a taxpayer's total tax liability is$30,000,taxable income is $100,000,and economic income is$120,000,the average tax rate is 30 percent.
True False
The corporate tax rate is
Multiple Choice
Which of the following taxes is proportional?
Multiple Choice
If a taxpayer's total tax liability is $4,000,taxable income is$20,000,and total economic income is \$40,000,then the effective tax rate is 20 percent.