Question 1

Given the following tax structure, what is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to average tax rates? What is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to effective tax rates?

Accepted Answer

Diego's average tax rate is 5%.

A 5% ...

Question 2

Earmarked taxes are:

Accepted Answer

A)   taxes assessed only on certain taxpayers.
B)   taxes assessed to fund a specific purpose.
C)   taxes assessed for only a specific time period.
D)   taxes assessed to discourage less desirable behavior.
E)   None of the choices are correct.F) B) and C)
G) D) and E)

Question 3

Jonah, a single taxpayer, earns $150,000 in taxable income and $10,000 in interest from an investment in city of Denver Bonds. Using the U.S. tax rate schedule for year 2018, how much federal tax will he owe? What is his average tax rate? What is his effective tax rate? What is his current marginal tax rate? If Jonah earned an additional $40,000 of taxable income, what is his marginal tax rate on this income? (Round the tax rates to 2 decimal places, e.g., .12345 as 12.35%) (Use tax rate schedule)

Accepted Answer

Jonah will owe $30,289.50 in federal inc...

Question 4

Jed Clampett is expanding his family-run beer distributorship into Georgia or Tennessee. His parents began the business many years ago and now three generations of Clampetts work in the family business. Jed will relocate the entire family (his parents, spouse, children, etc.) to either state after the move. What types of taxes may influence his decision of where to locate his business? What non-tax factors may influence the decision?

Accepted Answer

Taxes will affect several aspects of Jed...

Question 5

The ultimate economic burden of a tax is best captured by:

Accepted Answer

A)   the marginal tax rate.
B)   the effective tax rate.
C)   the average tax rate.
D)   the proportional tax rate.
E)   None of the choices are correct.F) C) and E)
G) D) and E)

Question 6

A flat tax is an example of a graduated tax system.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Excise taxes are typically levied on the value of a good purchased.

Accepted Answer

A) True 
 B)False

Question 10

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2018, what is his average tax rate (rounded) ? (Use tax rate schedule)

Accepted Answer

A)   15.23%
B)   12.00%
C)   7.42%
D)   22.00%
E)   None of the choices are correctF) B) and C)
G) D) and E)

Question 11

Bart is contemplating starting his own business. His new business would operate as a sole proprietorship and would require hiring several employees. Describe the employment-related taxes that Bart should be aware of as he starts his new business as a self-employed business owner.

Accepted Answer

Employment taxes consist of the Old Age,...

Question 12

Which of the following taxes represents the largest portion of U.S. Federal Tax revenues?

Accepted Answer

A)   Employment taxes
B)   Corporate income taxes
C)   Individual income taxes
D)   Estate and gift taxes
E)   None of the choices are correctF) A) and C)
G) A) and D)

Question 13

Which of the following is True?

Accepted Answer

A)   A regressive tax rate structure imposes an increasing marginal tax rate as the tax base increases.
B)   Regressive tax structures are the most common tax rate structure.
C)   An example of a regressive tax is an excise tax.
D)   In terms of effective tax rates, a sales tax can be viewed as a regressive tax.
E)   None of the choices are correct.F) All of the above
G) A) and D)

Question 14

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

Accepted Answer

A)   Only issue treasury bonds.
B)   Only cut funding to various federal projects.
C)   Only increase federal spending.
D)   Issue treasury bonds and cut funding to various federal projects but not increase federal spending.
E)   None of the choices are correct.F) A) and D)
G) A) and C)

Question 15

In a proportional (flat) tax rate system, the marginal tax rate will always equal the average tax rate.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

George recently paid $50 to renew his driver's license. The $50 payment is considered a tax.

Accepted Answer

A) True 
 B)False

Question 18

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not one of the basic tax rate structures?

Accepted Answer

A)   Proportional
B)   Equitable
C)   Regressive
D)   Progressive
E)   All of these are different kinds of the basic tax rate structuresF) All of the above
G) A) and D)

Question 20

Which of the following is True regarding use taxes?

Accepted Answer

A)   A use tax is relatively easy to enforce compared to a sales tax.
B)   Use taxes attempt to eliminate any tax advantage of purchasing goods out of state.
C)   Use taxes encourage taxpayers to buy goods out of state to avoid paying sales tax in their home state.
D)   A use tax is generally a progressive tax.
E)   None of the choices are correct.F) B) and E)
G) A) and D)

Exam 1: An Introduction to Tax

A flat tax is an example of a graduated tax system.

Correct Answer
verified

Correct Answer
verified
Taxes will affect several aspects of Jed...
View Answer

Which of the following is not one of the basic tax rate structures?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Bart is contemplating starting his own business. His new business would operate as a sole proprietorship and would require hiring several employees. Describe the employment-related taxes that Bart should be aware of as he starts his new business as a self-employed business owner.

Correct Answer
verified
Employment taxes consist of the Old Age,...
View Answer

Which of the following is True?

Correct Answer
verified

In a proportional (flat) tax rate system, the marginal tax rate will always equal the average tax rate.

Correct Answer
verified

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

Correct Answer
verified

Excise taxes are typically levied on the value of a good purchased.

Correct Answer
verified

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

Correct Answer
verified

Given the following tax structure, what is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to average tax rates? What is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to effective tax rates?

Correct Answer
verified
Diego's average tax rate is 5%.

A 5% ...
View Answer

Correct Answer
verified
Jonah will owe $30,289.50 in federal inc...
View Answer

George recently paid $50 to renew his driver's license. The $50 payment is considered a tax.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is True regarding use taxes?

Correct Answer
verified

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2018, what is his average tax rate (rounded) ? (Use tax rate schedule)

Correct Answer
verified

Earmarked taxes are:

Correct Answer
verified

The ultimate economic burden of a tax is best captured by:

Correct Answer
verified

Which of the following taxes represents the largest portion of U.S. Federal Tax revenues?

Correct Answer
verified

Exam 1: An Introduction to Tax

A flat tax is an example of a graduated tax system.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTaxes will affect several aspects of Jed...View AnswerShow Answer

Which of the following is not one of the basic tax rate structures?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Bart is contemplating starting his own business. His new business would operate as a sole proprietorship and would require hiring several employees. Describe the employment-related taxes that Bart should be aware of as he starts his new business as a self-employed business owner.

Correct AnswerverifiedEmployment taxes consist of the Old Age,...View AnswerShow Answer

Which of the following is True?

Correct AnswerverifiedShow Answer

In a proportional (flat) tax rate system, the marginal tax rate will always equal the average tax rate.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Excise taxes are typically levied on the value of a good purchased.

Correct AnswerverifiedShow Answer

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

Correct AnswerverifiedShow Answer

Given the following tax structure, what is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to average tax rates? What is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to effective tax rates?

Correct AnswerverifiedDiego's average tax rate is 5%. A 5% ...View AnswerShow Answer

Correct AnswerverifiedJonah will owe $30,289.50 in federal inc...View AnswerShow Answer

George recently paid $50 to renew his driver's license. The $50 payment is considered a tax.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is True regarding use taxes?

Correct AnswerverifiedShow Answer

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2018, what is his average tax rate (rounded) ? (Use tax rate schedule)

Correct AnswerverifiedShow Answer

Earmarked taxes are:

Correct AnswerverifiedShow Answer

The ultimate economic burden of a tax is best captured by:

Correct AnswerverifiedShow Answer

Which of the following taxes represents the largest portion of U.S. Federal Tax revenues?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
Taxes will affect several aspects of Jed...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Employment taxes consist of the Old Age,...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Diego's average tax rate is 5%.

A 5% ...
View Answer

Correct Answer
verified
Jonah will owe $30,289.50 in federal inc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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