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Federal Taxation

Business

Quiz 17 :

an Introduction to Taxation

Quiz 17 :

an Introduction to Taxation

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

True

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

True

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

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Which of the following taxes is progressive?
Multiple Choice
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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
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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
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The federal income tax is the dominant form of taxation by the federal government.
True False
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Which of the following taxes is regressive?
Multiple Choice
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The Sixteenth Amendment to the U.S.Constitution permits the passage of a federal income tax law.
True False
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Regressive tax rates decrease as the tax base increases.
True False
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When a change in the tax law is deemed necessary by Congress,the entire Internal Revenue Code must be revised.
True False
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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
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The marginal tax rate is useful in tax planning because it measures the tax effect of a proposed transaction.
True False
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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
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The corporate tax rate is
Multiple Choice
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Which of the following taxes is proportional?
Multiple Choice
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The terms "progressive tax" and "flat tax" are synonymous.
True False
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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.
True False
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A taxpayer's average tax rate is the tax rate applied to an incremental amount of taxable income that is added to the tax base.
True False
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The largest source of revenues for the federal government comes from
Multiple Choice
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