Chapter 1 _ 5 - Chapter 1 1 Is it a tax Margaret was issued...

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Chapter 1 1. Is it a tax? Margaret was issued a $150 speeding ticket. This is: Student Response Value Correct Answer Feedback 1. Not a tax because it is considered a fine intended to punish illegal behavior. 2. A tax because it is imposed by a government agency. 3. A tax because payment is required by law. 4. Not a tax because Margaret could have avoided payment if she did not speed. 5. A tax because the payment is not related to any specific benefit received
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Student Response Value Correct Answer Feedback from the government agency collecting the ticket. Score: 0/10 2. Earmarks Earmarked taxes are: Student Response Value Correct Answer Feedback 1. Taxes assessed to fund a specific purpose. 2. Taxes assessed only on certain taxpayers. 3. Taxes assessed to discourage less desirable behavior. 4. Taxes assessed for only a specific time period. Score: 0/10
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3. Excise Taxes Sin taxes are: Student Response Value Correct Answer Feedback 1. Taxes assessed on certain illegal acts. 2. Taxes assessed by religious organizations. 3. Taxes assessed to fund a specific purpose. 4. Taxes assessed to discourage less desirable behavior. Score: 0/10 4. Tax rate structure Which of the following is not one of the basic tax rate structures? Student Response Value Correct Answer Feedback 1. Proportional. 2. Regressive. 3. Progressive. 4. Equitable.
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Score: 0/10 5. Federal Tax Liability calculation (use tax tables) 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 2010, how much federal tax will he owe? Student Response Value Correct Answer Feedback 1. $12,431.25 2. $15,000.00 3. $8,581.25 4. $11,181.25 Score: 0/10 6. Average tax rate calculation 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 2010, what is his average tax rate (rounded)? Student Response Value Correct Answer Feedback 1. 14.30% 2. 19.13% 3. 25.00% 4. 18.64% Score: 0/10 7. Types of taxes - Use tax
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Which of the following is true regarding use taxes? Student Response Value Correct Answer Feedback 1. Use taxes encourage taxpayers to buy goods out of state to avoid paying sales tax in their home state. 2. A use tax is generally a progressive tax. 3. Use taxes attempt to eliminate any tax advantage of purchasing goods out of state. 4. A use tax is relatively easy to enforce compared to a sales tax. Score: 0/10 8. Types of tax - Personal property tax Which of the following is true regarding real property taxes and personal property taxes?
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Student Response Value Correct Answer Feedback 1. All U.S. states currently impose personal property taxes. 2. Personal property taxes are assessed on permanent structures and land. 3. Real property taxes are generally easier to administer than personal property taxes.
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