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Chapter 1 An Introduction to Tax




Question;Chapter 1;An Introduction to;Tax;SOLUTIONS;MANUAL;Discussion;Questions;(1);[LO1] Jessica?s friend Zachary once;stated that he couldn?t understand why someone would take a tax course. Why is this a rather na?ve view?;[LO1] What are some aspects of business that require knowledge of taxation? What are some aspects of personal finance;that require knowledge of taxation?;(2);[LO1] Describe some ways in which taxes affect the political process in;the United States.;(3);[LO2] Courtney recently received a speeding;ticket on her way to the university. Her;fine was $200. Is this considered a;tax? Why or why not?;(4);[LO2] Marlon and Latoya recently;started building a house. They had to;pay $300 to the county government for a building permit. Is the $300 payment a tax? Why or why not?;(5);[LO2] The city of Birmingham;recently enacted a 1 percent surcharge on hotel rooms that will help pay for;the city?s new stadium. Is this a;tax? Why or why not?;(6);[LO2] As noted in Example 1-2;tolls, parking meter fees, and annual licensing fees are not considered;taxes. Can you identify other fees that;are similar?;(7);[LO2] If the general objective;of our tax system is to raise revenue, why does the income tax allow deductions;for charitable contributions and retirement plan contributions?;(8);[LO2] One common argument for;imposing so-called sin taxes is the social goal of reducing demand for such products.;Using cigarettes as an example, is there a segment of the population;that might be sensitive to price and for whom high taxes might discourage;purchases?;(9);[LO3] Dontae stated that he didn?t want to;earn any more money because it would ?put him in a higher tax bracket.? What is wrong with Dontae?s reasoning?;(10);[LO3] Describe the three;different tax rates discussed in the chapter and how taxpayers might use them.;(11);[LO3] Which is a more;appropriate tax rate to use to compare taxpayers? tax burdens ? the average or;the effective tax rate? Why?;(12);[LO3] Describe the differences;between a proportional, progressive, and regressive tax rate structure.;(13);[LO3] Arnold and Lilly have;recently had a heated discussion about whether a sales tax is a proportional;tax or a regressive tax. Lilly argues;that a sales tax is regressive. Arnold counters;that the sales tax is a flat tax. Who is;correct?;(14);[LO4] Which is the largest tax;collected by the U.S. government? What;types of taxpayers are subject to this tax?;(15);[LO4] What is the tax base for;the Social Security and Medicare taxes for an employee or employer? What is the tax base for Social Security and;Medicare taxes for a self-employed individual?;Is the self-employment tax in addition to or in lieu of federal income;tax?;(16);[LO4] What are unemployment;taxes?;(17);[LO4] What is the;distinguishing feature of an excise tax?


Paper#52267 | Written in 18-Jul-2015

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