Question 1

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

Accepted Answer

A)   Personal property taxes are assessed on permanent structures and land
B)   Real property taxes are assessed on cars and boats
C)   All U.S. states currently impose personal property taxes
D)   Real property taxes are generally easier to administer than personal property taxes
E)   None of these is trueF) B) and E)
G) A) and D)

Question 2

The 9th Amendment to the U.S. Constitution removed all doubt that a federal income tax was allowed under the U.S. Constitution.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is false?

Accepted Answer

A)   A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base
B)   The average tax rate changes under a proportional tax rate structure, but it is static for a progressive tax rate system
C)   An example of a proportional tax is the tax on gasoline
D)   An example of a progressive tax is the federal tax on gifts
E)   None of theseF) A) and B)
G) D) and E)

Question 4

A use tax is typically imposed by a state on goods purchased within the state.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true regarding tax-advantaged assets?

Accepted Answer

A)   They are typically subject to excise taxes to account for their low explicit taxes
B)   A corporate bond is typically considered a tax-advantaged asset
C)   They are often subject to implicit taxes
D)   A corporate bond is typically considered a tax-advantaged asset and They are often subject to implicit taxes are correct but not They are typically subject to excise taxes to account for their low explicit taxes
E)   None of theseF) None of the above
G) D) and E)

Question 6

To calculate a tax, you need to know: I. the tax base
II)  the taxing agency
III)  the tax rate
IV)  the purpose of the tax

Accepted Answer

A)   Only I is correct
B)   Only IV is correct
C)   Only III is correct
D)   Items I through IV are correct
E)   I and III are correctF) All of the above
G) D) and E)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Taxes influence which of the following decisions?

Accepted Answer

A)   business decisions
B)   personal decisions
C)   political decisions
D)   investment decisions
E)   all of theseF) B) and E)
G) B) and D)

Question 9

Geronimo files his tax return as a head of household for year 2016. If his taxable income is $72,000, what is his average tax rate (rounded) ?

Accepted Answer

A)   17.08%
B)   18.24%
C)   19.13%
D)   25.00%
E)   None of theseF) All of the above
G) A) and B)

Question 10

Sin taxes are:

Accepted Answer

A)   Taxes assessed by religious organizations
B)   Taxes assessed on certain illegal acts
C)   Taxes assessed to discourage less desirable behavior
D)   Taxes assessed to fund a specific purpose
E)   None of theseF) A) and E)
G) A) and C)

Question 11

Raquel recently overheard two journalism students discussing the merits of the federal tax system. One student offered as an example of unfairness the spouse of a well-known politician who paid little income tax as most of the spouse's income was earned in the form of municipal bond interest. What type of taxes is the journalism student considering in his example? What type of taxes is he ignoring? Define each type of tax. What role does each type of tax play in calculating relative tax burdens? What role does each type of tax play in evaluating fairness?

Accepted Answer

The student is considering explicit taxe...

Question 12

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 2016, his marginal tax rate (rounded)  on the deductions would be:

Accepted Answer

A)   28.00%
B)   25.00%
C)   25.41%
D)   16.56%
E)   None of theseF) None of the above
G) A) and B)

Question 13

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 14

Which of the following is a tax? I. A 1% special sales tax for funding local road construction.
II)  A fee paid to the state for a license to practice as an attorney.
III)  An income tax imposed by Philadelphia on persons working within the city limits.
IV)  A special property assessment for installing a new water system in the taxpayer's neighborhood.

Accepted Answer

A)   Only I is correct.
B)   Only IV is correct.
C)   Only III is correct.
D)   III and IV are correct.
E)   I and III are correct.F) C) and D)
G) C) and E)

Question 15

Which of the following statements is true?

Accepted Answer

A)   Municipal bond interest is subject to explicit federal tax
B)   Municipal bond interest is subject to implicit tax
C)   Municipal bonds typically pay a higher interest rate than corporate bonds with similar risk
D)   All of these statements are true
E)   None of these statements is trueF) B) and D)
G) A) and B)

Question 16

The tax base for the federal income tax is taxable income.

Accepted Answer

A) True 
 B)False

Question 17

Oswald is beginning his first tax course and does not really have a solid understanding of the role that taxes play in various decisions. Please describe for Oswald the various types of decisions that taxes may influence.

Accepted Answer

Taxes are a part of everyday life and ha...

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________.

Accepted Answer

A)   a sin tax to discourage undesirable behavior
B)   a government fine
C)   an earmarked tax
D)   a sin tax to discourage undesirable behavior and An earmarked tax
E)   None of theseF) A) and E)
G) None of the above

Question 20

A common example of an employment related tax is the Medicare tax.

Accepted Answer

A) True 
 B)False

Exam 1: An Introduction to Tax

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

Correct Answer
verified

A common example of an employment related tax is the Medicare tax.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Geronimo files his tax return as a head of household for year 2016. If his taxable income is $72,000, what is his average tax rate (rounded) ?

Correct Answer
verified

Taxes influence which of the following decisions?

Correct Answer
verified

The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________.

Correct Answer
verified

Which of the following is true regarding tax-advantaged assets?

Correct Answer
verified

Oswald is beginning his first tax course and does not really have a solid understanding of the role that taxes play in various decisions. Please describe for Oswald the various types of decisions that taxes may influence.

Correct Answer
verified
Taxes are a part of everyday life and ha...
View Answer

Which of the following is false?

Correct Answer
verified

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

Correct Answer
verified

Sin taxes are:

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
The student is considering explicit taxe...
View Answer

A use tax is typically imposed by a state on goods purchased within the state.

Correct Answer
verified

The tax base for the federal income tax is taxable income.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

To calculate a tax, you need to know: I. the tax base II) the taxing agency III) the tax rate IV) the purpose of the tax

Correct Answer
verified

The 9^th Amendment to the U.S. Constitution removed all doubt that a federal income tax was allowed under the U.S. Constitution.

Correct Answer
verified

Exam 1: An Introduction to Tax

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

Correct AnswerverifiedShow Answer

A common example of an employment related tax is the Medicare tax.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Geronimo files his tax return as a head of household for year 2016. If his taxable income is $72,000, what is his average tax rate (rounded) ?

Correct AnswerverifiedShow Answer

Taxes influence which of the following decisions?

Correct AnswerverifiedShow Answer

The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________.

Correct AnswerverifiedShow Answer

Which of the following is true regarding tax-advantaged assets?

Correct AnswerverifiedShow Answer

Oswald is beginning his first tax course and does not really have a solid understanding of the role that taxes play in various decisions. Please describe for Oswald the various types of decisions that taxes may influence.

Correct AnswerverifiedTaxes are a part of everyday life and ha...View AnswerShow Answer

Which of the following is false?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sin taxes are:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe student is considering explicit taxe...View AnswerShow Answer

A use tax is typically imposed by a state on goods purchased within the state.

Correct AnswerverifiedShow Answer

The tax base for the federal income tax is taxable income.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To calculate a tax, you need to know: I. the tax base II) the taxing agency III) the tax rate IV) the purpose of the tax

Correct AnswerverifiedShow Answer

The 9th Amendment to the U.S. Constitution removed all doubt that a federal income tax was allowed under the U.S. Constitution.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Taxes are a part of everyday life and ha...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The student is considering explicit taxe...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The 9^th Amendment to the U.S. Constitution removed all doubt that a federal income tax was allowed under the U.S. Constitution.

Correct Answer
verified