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Unformatted text preview: Marie L. Guinyard Week 1 Homework 1-12. a) property taxes are based on the value of a taxpayer’s property, which may include both real estate and personal property. It used primarily by local government. b) Excise Taxes are imposed on alcohol, tobacco, gasoline, telephone usage, production of oil and gas and many other type of goods. It used primarily by federal government. c) sale taxes are imposed on retail of tangible personal property. It is primarily used by the state government. d) Income taxes is a major source of revenue for the federal government. e) Employment taxes include Social Security (FICA) and federal and state unemployment compensation taxes. It is used primarily by federal government. 1-13. a) The five characteristics of a “good” tax are equity, certainty, convenience, economy, and simplicity. Equity deals with the fairness of the tax to the taxpayers. Certainty tax (1) ensures a stable source of government operating revenues and (2) provides taxpayers with some degree of...
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- Spring '10
- Taxes, Taxation in the United States, low income taxes