1) Which of the following is a tax?
I. A 1% special sales tax for funding local Road construction.
II. A fee paid to the state for a license To practice as an attorney.
III. An income tax imposed by Philadelphia On persons working within the city limits.
IV. A special property assessment for Installing a new water system in the taxpayer's neighborhood.
E) I and III are correct.
2) Marc, a single taxpayer, earns $60,000 In taxable income and $5,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. Tax rate schedule for year 2018, how much federal tax will he owe? (Use tax rate schedule) C) $9,139.50
3) Marc, a single taxpayer, earns $60,000 In taxable income and $5,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. Tax rate Schedule for year 2018, what is his effective tax rate (rounded)? (Use tax rate schedule) B) 14.06%
4) Which of the following is false?B) The average tax rate changes under a Proportional tax rate structure, but it is static for a progressive tax rate System.
5) The ultimate economic burden of a tax is Best captured by: B) the effective tax rate.
6) The concept of tax sufficiency: D) All of the choices are correct.
7) Which of the following federal Government actions would make sense if a tax system fails to provide sufficient Taxrevenue? D) Issue treasury bonds and cut funding to Various federal projects but not increase federal spending.
8) Al believes that SUVs have negative Social and environmental effects because of their increased carbon monoxide emissions. He proposes eliminating sales Taxes on smaller automobiles in favor of higher sales taxes levied on SUVs. Al performs some calculations and comes to The conclusion that based on the current number of SUVs owned in the U.S. Exactly the same amount of total sales Tax will be collected under his reformed system. Which of the following concepts explains why Al's idea may not Work? C) Substitution effect
9) Employers often withhold federal income Taxes directly from worker's paychecks. This is an example of which
principle in practice? A) Convenience.
10) Leonardo, who is married but files Separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of Taxable income. If Leonardo earned an additional $30,000 of Taxable income this year, what would be the marginal tax rate (rounded) on the extra income for year 2018? (Use tax Rate schedule) D) 23.83%
11) Jackson has the choice to invest in City of Mitchell bonds or Sundial, Inc. Corporate bonds that pay 10% interest. Jackson Is a single taxpayer who earns $55,000 annually. Assume that the city of Mitchell bonds and the Sundial, Inc. Bonds have similar risk. What interest Rate would the city of Mitchell have to pay in order to make Jackson Indifferent between investing in the city of Mitchell and the Sundial, Inc. Bonds for year 2018? (Use tax rate schedule) A) 7.80%
12) Which of the following statements Regarding realized income is true? B) Realized income requires some type of Transaction or exchange with a second party.
13) Which of the following statements Regarding tax deductions is false? C) From AGI deductions tend to be associated With business activities while for AGI deductions tend to be associated with Personal activities.
14) Which of the following is NOT a from AGI deduction? D) None of these. All of these are from AGI deductions.
15) Which of the following shows the Correct relationship among standard deduction amounts for the respective filing Statuses? C) Married Filing Jointly > Head of Household > Single
16) Which of the following statements is True? C) Qualified dividend income is taxed at a lower rate than an equal Amount of ordinary income.
17) Madison's gross tax liability is $9,000. Madison had $3,000 of tax credits available and she had $8,000 of taxes Withheld by her employer. What is Madison's taxes due (or taxes refunded) with Her tax return? C) $2,000 tax refund.