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tax problems ch 1 essay 2015




Question;89.;Oswald is;beginning his first tax course and does not really have a solid understanding;of the role that taxes play in various decisions. Please describe for Oswald;the various types of decisions that taxes may influence.;90.;For each of;the following, determine if each is a tax and why or why not.;a. $2.50 toll paid;on the Florida Turnpike;b. $300 ticket for;reckless driving;c. 1% local surcharge;on hotel rooms to fund public roadways;d. 2% city surcharge;on wages earned in the city of Philadelphia;91.;Although the;primary purpose of a tax system is to raise revenue, Congress uses the;federal tax system for other purposes as well. Describe the other ways in;which Congress uses the federal tax system. Be specific.;92.;There are;several different types of tax rates that taxpayers might use in different;contexts. Describe each tax rate and how a taxpayer might use it.;93.;Ricky and;Lucy are debating several types of taxes. Their debate has focused on the;different types of tax rate structures and whether they are "fair.;Please define each tax rate structure, provide examples of each structure, and;discuss how each structure may be viewed with respect to vertical;equity.;94.;Bart is;contemplating starting his own business. His new business would operate as a;sole proprietorship and would require hiring several employees. Describe the;employment-related taxes that Bart should be aware of as he starts his new;business as a self-employed business owner.;95.;Raquel;recently overheard two journalism students discussing the merits of the;federal tax system. One student offered as an example of unfairness the;spouse of a well-known politician who paid little income tax as most of the;spouse's income was earned in the form of municipal bond interest. What type;of taxes is the journalism student considering in his example? What type of;taxes is he ignoring? Define each type of tax. What role does each type of;tax play in calculating relative tax burdens? What role does each type of tax;play in evaluating fairness?;96.;Mandy, the;mayor of Bogart and a strong advocate of a clean downtown, is proposing an;increase in the city sales tax from 7% to 50% on all packs of chewing gum;purchased in Bogart. Based on the current gum sales, Mandy estimates that;this tax will actually reduce the tax revenue on gum sales. What type of;forecasting is Mandy using to derive her tax revenue estimates? What;"effect" is her estimate based on? Does this necessarily imply that;Mandy will be happy given her desire to have a clean downtown?;97.;Milton and;Rocco are having a heated debate regarding a national sales tax. Milton;argues that a national sales tax is a proportional, vertically equitable tax.;Rocco argues that a national sales tax would be a regressive, vertically;inequitable tax. Explain both sides of the argument;98.;Evaluate the;U.S. federal tax system on the certainty and economy criteria.;99.;Jonah, a;single taxpayer, earns $150,000 in taxable income and $10,000 in interest;from an investment in city of Denver Bonds. Using the U.S. tax rate schedule;for year 2014, how much federal tax will he owe? What is his average tax;rate? What is his effective tax rate? What is his current marginal tax rate?;If Jonah earned an additional $40,000 of taxable income, what is his marginal;tax rate on this income? (Round the tax rates to 2 decimal places, e.g.;.12345 as 12.35%);100.;Heather, a;single taxpayer who files as a head of household, earns $60,000 in taxable;income and $5,000 in interest from an investment in city of Oxford Bonds.;Using the U.S. tax rate schedule for year 2014, how much federal tax will she;owe? What is her average tax rate? What is her effective tax rate? What is;her current marginal tax rate? If Heather has an additional $20,000 of tax;deductions, what is her marginal tax rate on these deductions? (Round the tax;rates to 2 decimal places, e.g.,.12345 as 12.35%);101.;Fred and;Wilma, married taxpayers, earn $100,000 in taxable income and $20,000 in;interest from an investment in city of Bedrock Bonds. Using the U.S. tax rate;schedule for married filing jointly for year 2014, how much federal tax will;they owe? What is their average tax rate? What is their effective tax rate?;What is their current marginal tax rate? If Fred and Wilma earn an additional;$40,000 of taxable income, what is their marginal tax rate on this income?;(Round the tax rates to 2 decimal places, e.g.,.12345 as 12.35%)


Paper#38051 | Written in 18-Jul-2015

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