SWFT Comprehensive Vol 2020
43rd Edition
ISBN: 9780357391723
Author: Maloney
Publisher: Cengage
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3. Suppose that the U.S. personal income tax system became a flat tax system, in which
all taxpayers paid a certain percentage of their incomes in tax, and in which there are no
exemptions or deductions. In which way(s) could this flat tax be more regressive than the
present U.S. system? In which ways could it be more progressive than the present
system?
6
The Social Security tax is often described as a regressive tax since only earnings below a certain threshold are taxed. What is your opinion on the fairness of this tax?
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- As 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_forwardThe current federal income tax structure is progressive in nature. First, explain what that means. Second, regarding the proposal for a "flat tax", comment on both justification for and major obstacles to enactment.arrow_forwardWhat do you think is the reason why governments grants "exclusion from the gross income"arrow_forward
- Prior to the adoption of the 16th amendment, in Pollock v. Farmers’ Loan and Trust Co. the Supreme Court held that: An unapportioned tax on the income from land is not a direct tax, and therefore constitutional. An unapportioned tax on the income from land is a direct tax, and therefore unconstitutional. An unapportioned tax on the income of land is an indirect tax, and therefore constitutional. An unapportioned tax on the income of land is an indirect tax, and therefore unconstitutional.arrow_forwardThe government should tax itself? Yes or noarrow_forwardDoes the concept of a progressive (and fair) tax system become undermined by the ability to tweak the Tax Code to suit Congress' purposes in terms of driving social policy?arrow_forward
- Does the IRS acquiesce in decisions of U.S. district courts? C O A. Yes. However, the IRS can only acquiesce in a federal court decision that is adverse to the IRS if they feel the taxpayer is defrauding their tax liability. O B. Yes. The IRS can acquiesce in any federal court decision that is adverse to the IRS if the IRS decides to do so. O C. Yes. The IRS can acquiesce in any federal court decision that is adverse to the IRS if the opinions of the IRS commissioner is not taken into account. O D. No. The IRS has no grounds to acquiesce in any federal court decision. They can only acquiesce in regular Tax court decisions.arrow_forwardIn case of ambiguity, tax exemptions shall be interpreted liberally in favor of the government. Group of answer choices True Falsearrow_forwardThe power to tax is provided for by the Constitution, the National Internal Revenue Code, Special Laws, and administrative revenue issuances. Group of answer choices True Falsearrow_forward
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