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D all of the above 15 the federal income tax system

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Unformatted text preview: of income. B. the marginal tax rate rises with the level of income. C. the average tax rate is higher for high income earners that for low income earners. D. All of the above. 15. The federal income tax system has how many tax brackets? A. One B. Two C. Three D. Four 16. The most important wealth tax in Canada is A. the Federal Inheritance Tax (FIT).* B. the Goods and Services Tax (GST). C. municipal property taxes. D. None of the above. 17. Corporate taxes are paid by Canadian companies on their A. income B. net income 18. “In Canada, dividend payments to shareholders are an allowable cost for tax purposes”. True or false? A. True. B. False. 38 19. The GST is A. a sales tax. B. an excise tax. C. an ad valorem tax. D. Both A and C. 20. Taxation is distortionary because A. all forms of economic activity are taxed. B. economic agents substitute into activities that are subject to lower taxation. C. the tax system is costly to administer. D. All of the above. 21. The Laffer curve A. states that if tax rate...
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This document was uploaded on 03/03/2014.

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