Chapter 12 (sample exercise)

Chapter 12 (sample exercise) - Chapter 12The Design of the...

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Chapter 12—The Design of the Tax System 1. In 1961 the Canadian government collected what percent of total income in taxes? a. approximately 20 percent. b. approximately 28 percent. c. approximately 40 percent. d. approximately 50 percent. 2. The federal government collects taxes in a number of ways. Rank the following sources of revenue from largest to the smallest. a. corporate income tax, social security tax, personal income tax, import tax b. estate tax, corporate income tax, excise tax, individual income tax c. corporate income tax, payroll tax, individual income tax, excise tax d. individual income tax, payroll tax, corporate income tax, excise tax 3. When comparing the tax burden of several major countries, Canada’s tax burden is a. at the top. b. in the middle. c. near the bottom. d. dead last. 4. A budget deficit a. occurs when government receipts are less than spending. b. occurs when government spending is less than receipts. c. occurs when government receipts are equal to spending. d. is the accumulation of years of government overspending. 5. The tax that generates the most revenue for provincial and local government is the a. corporate income tax. b. individual income tax. c. property tax. d. sales tax. 6. For provincial and local governments, education accounts for what percent of spending? a. 5 percent b. 20 percent c. 50 percent d. 75 percent 7. Approximately what percent of the Federal government's receipts come from individual income taxes? a. 10 percent b. 25 percent c. 35 percent d. 46 percent 8. Which of the following is true about the percent of total income the Canadian government takes as taxes? a. In 1961 the government collected 28 percent of total income and in 2002, it collected 41 percent. b. In 1961 the government collected 16 percent of total income and in 2002, it collected 46 percent. c. In 1961 the government collected 21 percent of total income and in 2002, it collected 35
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percent. d. In 1961 the government collected 17 percent of total income and in 2002, it collected 13 percent. Table 12-1 On Taxable Income The Tax Rate is Up To $27,050 15.0% From $27,050 to $65,550 27.5 From $65,550 to $136,750 30.5 From $136,750 to $297,350 35.5 9. Refer to Table 12-1 . If Danielle makes $38,000 this year on her new job, her tax liability would be approximately a. $4,058. b. $5,700. c. $7,069. d. $10,450. 10. The three largest categories of spending by the federal government in order from first to third would be a. Old Age Security, EI, CHST. b.
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Chapter 12 (sample exercise) - Chapter 12The Design of the...

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