McGraw-Hill's Taxation of Individuals and Business Entities 2019 Edition
1st Edition
ISBN: 9781259918391
Author: Professor, Brian C. Spilker
Publisher: McGraw-Hill Education
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Question
Chapter 1, Problem 20DQ
To determine
Explain the type of tax State G has recently increased on a pack of cigarettes and the reason for choosing that type of tax.
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Students have asked these similar questions
Which of the following statements concerning state sales tax is correct?
All 50 states collect sales tax.
Only the federal government is authorized to tax gasoline.
Some states impose so-called sin taxes.
States that have a state income tax do not collect sales taxes.
Which of the following is NOT a transaction tax? Question 21 options: The federal GST that is assessed in Alberta. The provincial sales tax that is assessed in Manitoba. The tax charged for spending
a day in Banff National Park. The toll assessed for driving on Highway 407 in Toronto.
Which of the following is true?
a. Business taxpayers with annual sales or receipts higher than the VAT threshold who opted to register as VAT taxpayers cannot register back as non-VAT because of the three-year lock-in period.
b. A VAT taxpayer may also be subject to other percentage taxes and excise taxes provided a range of goods and services offered.
c. The basis on imposing a consumption tax on the sale of services is the quarterly sales.
d. Exportation made by business taxpayers normally subject to the general percentage tax is taxable for consumption taxes.
e. All of the other choices is incorrect.
Chapter 1 Solutions
McGraw-Hill's Taxation of Individuals and Business Entities 2019 Edition
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Courtney recently received a speeding ticket on...Ch. 1 - Prob. 5DQCh. 1 - To help pay for the citys new stadium, the city of...Ch. 1 - Prob. 7DQCh. 1 - If the general objective of our tax system is to...Ch. 1 - One common argument for imposing so-called sin...Ch. 1 - Prob. 10DQ
Ch. 1 - Describe the three different tax rates discussed...Ch. 1 - Which is a more appropriate tax rate to use to...Ch. 1 - Describe the differences between proportional,...Ch. 1 - Arnold and Lilly recently had a heated discussion...Ch. 1 - Which is the largest tax collected by the U.S....Ch. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 20DQCh. 1 - What is the difference between a sales tax and a...Ch. 1 - What is an ad valorem tax? Name an example of this...Ch. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Kobe strongly dislikes SUVs and is appalled that...Ch. 1 - Prob. 27DQCh. 1 - What is the difference between horizontal and...Ch. 1 - Montel argues that a flat income tax rate system...Ch. 1 - Discuss why evaluating vertical equity simply...Ch. 1 - Prob. 31DQCh. 1 - Many years ago a famous member of Congress...Ch. 1 - Prob. 33DQCh. 1 - Prob. 34PCh. 1 - Prob. 35PCh. 1 - Prob. 36PCh. 1 - Prob. 37PCh. 1 - Prob. 38PCh. 1 - Prob. 39PCh. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Melinda invests 200,000 in a City of Heflin bond...Ch. 1 - Hugh has the choice between investing in a City of...Ch. 1 - Using the facts in problem 43, what interest rate...Ch. 1 - Fergie has the choice between investing in a State...Ch. 1 - Prob. 46PCh. 1 - Given the following tax structure, what minimum...Ch. 1 - Using the facts in problem 47, what minimum tax...Ch. 1 - Song earns 100,000 taxable income as an interior...Ch. 1 - Prob. 50PCh. 1 - Prob. 51PCh. 1 - Using the facts in problem 51, what is the minimum...Ch. 1 - Using the facts in problem 51, what is the minimum...Ch. 1 - Prob. 54PCh. 1 - Consider the following tax rate structure. Is it...Ch. 1 - Consider the following tax rate structure. Is it...Ch. 1 - Prob. 57PCh. 1 - Prob. 58PCh. 1 - Using the Internet, find a comparison of income...
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Similar questions
- Which of the following is correct? Business taxpayers with annual sales or receipts higher than the VAT threshold who opted to register as VAT taxpayers cannot register back as non-VAT because of the three-year lock-in period. A VAT taxpayer may also be subject to other percentage taxes and excise taxes provided a range of goods and services offered. The basis on imposing a consumption tax on the sale of services is the quarterly sales. Exportation made by business taxpayers normally subject to the general percentage tax is taxable for consumption taxes. All of the other choices is incorrect.arrow_forwardWho is the person statutorily liable to pay the consumption tax on local sale of goods and services? *SellerBuyerBoth Seller and BuyerAnswer not given Which is wrong? * International carriers doing business in the Philippines shall pay a tax equivalent to 3% of their quarterly gross receipts derived from the transport of cargoes, baggage, or mails from the Philippines to another country. International carrier's transport of passenger is exempt from tax. Keepers of garage are subject to 3% common carrier’s tax regardless of the amount of their gross receipts. All common carriers are subject to VAT on their transport of passengers or cargoes by water or by air Who is the person statutorily liable to pay the consumption tax on local sale of goods and services? * SellerBuyerBoth Seller and BuyerAnswer not givenarrow_forwardWhich of these is NOT a tax assessed by the state to earn revenue? A Sales Tax B Excise Tax C Hotel Occupancy Tax D Entertainment Ticket Taxarrow_forward
- Suppose that a state has increased its sales tax rate every other year since 2008. Assume that the state collected all sales taxes that residents legally owed. The table below summarizes its experience. What were total taxable sales in this state during each year displayed in the table? (Complete the table below.) (See page 131.) Year Sales Tax Rate Sales Tax Collections Total Taxable Sales 2008 0.05 (5 percent) $12,000,000 2010 0.06 (6 percent) $16,000,000 2012 0.07 (7 percent) $23,000,000 2014 0.08 (8 percent) $28,000,000 2016 0.09 (9 percent) $34,000,000 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardTireCo is a retail store in a state that imposes a 6 percentsales tax. Would you expect to find sales tax expense andsales tax payable in TireCo’s financial statements? Explain.arrow_forwardAs stated in the text, the federal income tax is the largest revenue-producing tax in use in the United States. Why do you think the income tax produces more revenue than any other tax?arrow_forward
- Which of the following statements is incorrect on winnings of a resident citizen? a. Lotto winnings in the United States is subject to income tax in the Philippines d. Winnings in a raffle draw sponsored by a cigarette company is subject to tax based on the schedule of rates in the tax table if the amount involved does not exceed P10,000. c. Winnings of brand new cars in a raffle draw sponsored by SM are taxable b. Lotto winnings sponsored by the Philippine Charity Sweepstakes Office is taxable subject final taxarrow_forwardThe City of Philadelphia has imposed a tax on sugar sweetened soda. Who would pay all or most of that tax, producers or consumers? Explain in detail.arrow_forwardThe recent implementation of TCJA Act of 2017 limits the deductions for state and local taxes, which includes property taxes and sales taxes, to a maximum amount of $10,000 each year. Is the IRS taking drastic steps towards curbing home ownership? Does this place a disproportionate burden on taxpayers residing in states with higher market values on residential property?arrow_forward
- Suppose that the income tax law exempts income of less than $8000 from the tax, taxes income between $8000 and $20,000 at a 25% rate, and taxes income greater than $20,000 at a 30% rate. Find the average tax rate and the marginal tax rate for someone earning $16,000 and for someone earning $30,000. The tax law is change so that income of less than $6000 is untaxed, income from $6000 to $20,000 is taxed at 20%,arrow_forward2arrow_forwardWhich of the following is wrong? If the seller is a non-VAT registered seller, the government shall withhold a 3% final percentage tax on the sale before payment. The final withholding system on the sales to the government and GOCC will no longer be applicable starting 2021. VAT treatment on sales to government is the same as VAT treatment on sale to non-government taxpayer except for the mandatory withholding of 5% by the government agency who avail the goods or services offered by the seller. None of the choicesarrow_forward
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