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Question;1. The;ratification of the Sixteenth Amendment to the U.S. Constitution was necessary;to validate the Federal income tax on corporations.a. Trueb. FalseANSWER: 2. Before;the Sixteenth Amendment to the Constitution was ratified, there was no valid;Federal income tax on individuals.a. Trueb. False3. The first;income tax on individuals (after the ratification of the Sixteenth Amendment to;the Constitution) levied tax rates from a low of 2% to a high of 6%.a. Trueb. FalseANSWER: True4. The;Federal income tax on individuals generates more revenue than the Federal;income tax on corporations.a. Trueb. False5. The;pay?as?you?go feature of the Federal income tax on individuals conforms to Adam;Smith?s canon of certainty.a. Trueb. False?6. Because;the law is complicated, most individual taxpayers are not able to complete;their Federal income tax returns without outside assistance.a. Trueb. False7. The FICA;tax (Medicare component) on wages is progressive since the tax due increases as;wages increase.a. Trueb. False8. The;Federal excise tax on cigarettes is an example of a proportional tax.a. Trueb. False.9. The;Federal estate and gift taxes are examples of progressive taxes.a. Trueb. False10. Currently;the Federal income tax is less progressive than it ever has been in the past.a. Trueb. False11. Mona;inherits her mother?s personal residence, which she converts to a furnished rent;house. These changes should affect the amount of ad valorem;property taxes levied on the properties.a. Trueb. False12. A fixture;will be subject to the ad valorem tax on personalty rather than the ad valorem;tax on realty.a. Trueb. False13. Even if;property tax rates are not changed, the amount of ad valorem taxes imposed on;realty may not remain the same.a. Trueb. False14. The ad;valorem tax on personal use personalty is more often avoided by taxpayers than;the ad valorem tax on business use personalty.a. Trueb. False15. A Federal;excise tax is no longer imposed on admission to theaters.a. Trueb. False16. There is a;Federal excise tax on hotel occupancy.a. Trueb. False17. The;Federal gas-guzzler tax applies only to automobiles manufactured overseas and;imported into the U.S.a. Trueb. False?18. Like the;Federal counterpart, the amount of the state excise taxes on gasoline varies;from state to state.a. Trueb. False19. Not all of;the states that impose a general sales tax also have a use tax.a. Trueb. False20. Sales made;by mail order are not exempt from the application of a general sales (or use);tax.a. Trueb. False21. States;impose either a state income tax or a general sales tax, but not both types of;taxes.a. Trueb. False22. 23. Two;persons who live in the same state but in different counties may not be subject;to the same general sales tax rate.a. Trueb. False24. A safe and;easy way for a taxpayer to avoid local and state sales taxes is to make the;purchase in a state that levies no such taxes.a. Trueb. False?25. On;transfers by death, the Federal government relies on an estate tax, while;states impose an estate tax, an inheritance tax, both taxes, or neither tax.a. Trueb. False26. An;inheritance tax is a tax on a decedent?s right to pass property at death.a. Trueb. False.27. Under;Clint?s will, all of his property passes to either the Lutheran Church or to;his wife. No Federal estate tax will be due on Clint?s death in 2014.a. Trueb. False28. One of the;major reasons for the enactment of the Federal estate tax was to prevent large;amounts of wealth from being accumulated within the family unit.a. Trueb. False29. Under the;usual state inheritance tax, two heirs, a cousin and a son of the deceased;would not be taxed at the same rate.a. Trueb. False30. The annual;exclusion, currently $14,000, is available for gift and estate tax purposes.a. Trueb. False31. In 2014;Jos?, a widower, sells land (fair market value of $100,000) to his daughter;Linda, for $50,000. Jos? has not made a taxable gift.a. Trueb. False32. Julius, a;married taxpayer, makes gifts to each of his six children. A maximum of twelve;annual exclusions could be allowed as to these gifts.a. Trueb. False33. One of the;motivations for making a gift is to save on income taxes.a. Trueb. False34. The;formula for the Federal income tax on corporations is the same as that;applicable to individuals.a. Trueb. False35. A state;income tax can be imposed on nonresident taxpayers who earn income within the;state on an itinerant basis.a. Trueb. False?;="msonormal">


Paper#39445 | Written in 18-Jul-2015

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