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Federal Taxation

Business

Quiz 1 :

Introduction to Taxation

Quiz 1 :

Introduction to Taxation

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A Federal excise tax is no longer imposed on admission to theaters.
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True False
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Answer:

True

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Currently,the Federal income tax is less progressive than it ever has been in the past.
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True False
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Answer:

False

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The Federal estate and gift taxes are examples of progressive taxes.
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True False
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Answer:

True

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On transfers by death,the Federal government relies on an estate tax,while states impose an estate tax,an inheritance tax,both taxes,or neither tax.
True False
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Sales made by mail order are not exempt from the application of a general sales (or use)tax.
True False
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Like the Federal counterpart,the amount of the state excise taxes on gasoline varies from state to state.
True False
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A parent employs his twin daughters,age 17,in his sole proprietorship.The daughters are not subject to FICA coverage.
True False
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An inheritance tax is a tax on a decedent's right to pass property at death.
True False
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The principal objective of the FUTA tax is to provide some measure of retirement security.
True False
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The Federal gas-guzzler tax applies only to automobiles manufactured overseas and imported into the U.S.
True False
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The Federal excise tax on cigarettes is an example of a proportional tax.
True False
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Currently,the tax base for the Social Security component of the FICA is not limited to a dollar amount.
True False
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The FICA tax (Medicare component)on wages is progressive since the tax due increases as wages increase.
True False
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There is a Federal excise tax on hotel occupancy.
True False
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Not all of the states that impose a general sales tax also have a use tax.
True False
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A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state that levies no such taxes.
True False
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Unlike FICA,FUTA requires that employers comply with state as well as Federal rules.
True False
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States impose either a state income tax or a general sales tax,but not both types of taxes.
True False
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Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.
True False
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One of the major reasons for the enactment of the Federal estate tax was to prevent large amounts of wealth from being accumulated within the family unit.
True False
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