McGraw Hill’s Taxation of Individuals and Business Entities 2022 Edition 13th Edition by Brian Spilk
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In terms of effective tax rates, the sales tax can be viewed as a regressive tax.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the three basic tax rate
structures and calculate a tax.
While sales taxes are quite common, currently the U.S. federal government does not impose a sales tax.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
The largest federal tax, in terms of revenue collected, is the Social Security tax.
True
False
The most significant tax assessed by the U.S. government is the income tax.
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
The 9 th Amendment to the U.S. Constitution removed all doubt that a federal income tax was allowed under the U.S. Constitution.
True
False
The 16 th amendment removed all doubt that a federal income tax was allowed under the U.S. Constitution and was ratified in February 1913.
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
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A common example of an employment-related tax is the Medicare tax.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
Self-employment taxes are charged on self-employment income in addition to any federal income tax.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
Excise taxes are typically levied on the value of a good purchased.
True
False
Excise taxes are levied on the quantity of products purchased.
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
The estate tax is assessed based on the fair market values of transfers made during a taxpayer's life.
True
False
The estate tax is based on the fair value of wealth transfers upon death.
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
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A use tax is typically imposed by a state on goods purchased within the state.
True
False
A use tax is levied on goods owned, possessed, or consumed within a state that were not purchased within the state.
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
Property taxes may be imposed on both real and personal property.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
Relative to explicit taxes, implicit taxes are much easier to estimate.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
Implicit taxes are indirect taxes on tax-favored assets.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-04 Identify the various federal, state, and
local taxes.
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Dynamic forecasting does not take into consideration taxpayers' responses to a tax change when estimating tax revenues.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-05 Apply appropriate criteria to evaluate
alternative tax systems.
The income and substitution effects are two opposing effects that one could consider in static forecasting.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-05 Apply appropriate criteria to evaluate