McGraw Hill’s Essentials of Federal Taxation 2022 Edition 13th Edition by Brian Spilker test bank
constitutes a tax and the general
objectives of taxation.
8.
Award: 1.00 point
9.
Award: 1.00 point
One key characteristic of a tax is that it is a required payment to a governmental agency.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what
constitutes a tax and the general
objectives of taxation.
Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what
constitutes a tax and the general
objectives of taxation.
10.
Award: 1.00 point
11.
Award: 1.00 point
One benefit of a sin tax (e.g., a tax on cigarettes) is that it should increase the demand for the
products being taxed.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what
constitutes a tax and the general
objectives of taxation.
In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic or
social objectives).
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-02 Discuss what
constitutes a tax and the general
objectives of taxation.
12.
Award: 1.00 point
13.
Award: 1.00 point
The two components of the tax calculation are the tax rate and the taxpayer's status.
True
False
Tax equals the tax base multiplied by the tax rate.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
The tax base for the federal income tax is taxable income.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
14.
Award: 1.00 point
15.
Award: 1.00 point
A flat tax is an example of a graduated tax system.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
The main difficulty in calculating an income tax is determining the correct amount of the tax base.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
16.
Award: 1.00 point
17.
Award: 1.00 point
A taxpayer's average tax rate is the most appropriate tax rate to use in tax planning.
True
False
The marginal tax rate is particularly useful in tax planning because it represents the rate of taxation
or savings that would apply to additional taxable income or additional tax deductions.
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
The effective tax rate, in general, provides a better depiction of a taxpayer's tax burden than the
average tax rate.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
18.
Award: 1.00 point
19.
Award: 1.00 point
The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable
and nontaxable income.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
In a proportional (flat) tax rate system, the marginal tax rate will always equal the average tax rate.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
20.
Award: 1.00 point
21.
Award: 1.00 point
In a regressive tax rate system, the marginal tax rate will often be greater than the average tax rate.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the
three basic tax rate structures and
calculate a tax.
A sales tax is a common example of a progressive tax rate structure.
True
False
References
True / False Difficulty: 2 Medium Learning Objective: 01-03 Describe the