Indicate True or False for all: 1. Under proportional taxation, as a person’s taxable income increases, the percentage of income paid in taxes increases. 2. With progressive taxation, a smaller percentage of taxable income is taken in taxes as taxable income increases. 3. For State and Local governments, key taxes are individual income taxes, corporate income taxes, Social Security taxes, and excise taxes on items such as gasoline and alcoholic beverages. 4. Only U.S. citizens who earn income in the United States are required to pay federal income taxes on all taxable income, including income earned abroad. 5. Corporate tax is the main source of government tax receipts. 6. The difference between the purchase price and sale price of an asset, such as a share of stock or a plot of land, is called a capital gain if it is a profit. 7. Tax brackets for the purposes of calculating marginal tax rates each year are expanded at the rate of inflation, that is, the rate at which the average of all prices is rising. 8. Corporations can function only as long as consumers buy their products, employees make their goods, stockholders (owners) buy their shares, and bondholders buy their bonds. 9. The question of tax incidence applies to all taxes, excluding sales taxes and Social Security taxes. 10. The Social Security tax is imposed on earnings up to roughly $120,000 at a rate of 7.2 percent on employers and 8.2 percent on employees. 11. Federal unemployment insurance tax, which helps to pay for unemployment insurance is paid by the employee. 12. For most state and local governments, income taxes yield more revenues than taxes imposed on sales of goods and services. 13. Sales taxes are a form of ad valorem taxation, which means that the tax is applied “to the value” of the good. 14. According to dynamic tax analysis, a likely response to an increase in a tax rate is a decrease in the tax base. 15. A tax levied on purchases of a particular good or service is the unit tax
ANSWER ALL 15 CORRECTLY SINCE YOU'RE JUST WRITING TRUE OR FALSE FOR EACH, THANKS
Indicate True or False for all:
1. Under proportional
2. With progressive taxation, a smaller percentage of taxable income is taken in taxes as taxable income increases.
3. For State and Local governments, key taxes are individual income taxes, corporate income taxes, Social Security taxes, and excise taxes on items such as gasoline and alcoholic beverages.
4. Only U.S. citizens who earn income in the United States are required to pay federal income taxes on all taxable income, including income earned abroad.
5. Corporate tax is the main source of government tax receipts.
6. The difference between the purchase price and sale price of an asset, such as a share of stock or a plot of land, is called a
7. Tax brackets for the purposes of calculating marginal tax rates each year are expanded at the rate of inflation, that is, the rate at which the average of all prices is rising.
8. Corporations can function only as long as consumers buy their products, employees make their goods, stockholders (owners) buy their shares, and bondholders buy their bonds.
9. The question of tax incidence applies to all taxes, excluding sales taxes and Social Security taxes.
10. The Social Security tax is imposed on earnings up to roughly $120,000 at a rate of 7.2 percent on employers and 8.2 percent on employees.
11. Federal
12. For most state and local governments, income taxes yield more revenues than taxes imposed on sales of goods and services.
13. Sales taxes are a form of ad valorem taxation, which means that the tax is applied “to the value” of the good.
14. According to dynamic tax analysis, a likely response to an increase in a tax rate is a decrease in the tax base.
15. A tax levied on purchases of a particular good or service is the unit tax
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