McGraw Hill’s Essentials of Federal Taxation 2022 Edition 13th Edition by Brian Spilker test bank
three basic tax rate structures and
calculate a tax.
22.
Award: 1.00 point
23.
Award: 1.00 point
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.
24.
Award: 1.00 point
25.
Award: 1.00 point
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.
26.
Award: 1.00 point
27.
Award: 1.00 point
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.
28.
Award: 1.00 point
29.
Award: 1.00 point
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.
30.
Award: 1.00 point
31.
Award: 1.00 point
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.
32.
Award: 1.00 point
33.
Award: 1.00 point
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.
34.
Award: 1.00 point
35.
Award: 1.00 point
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 alternative