Tb for Taxation

Chapter 01 - Taxes and Taxing Jurisdictions

Chapter 01 Taxes and Taxing Jurisdictions

True / False Questions

1. Payment of a tax entitles the payer to a specific good or service from the government. True False

2. A user fee entitles the payer to a specific good or service from the government. True False

3. A tax is intended to deter or punish unacceptable behavior. True False

4. A tax is a payment to support the cost of government. True False

5. Under U.S. tax law, corporations are entities separate and distinct from their shareholders. True False

6. The person who pays a tax directly to the government always bears the economic incidence of the tax. True False

7. In some cases, the payer of a tax can shift the economic incidence of the tax to a third party. True False

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Chapter 01 - Taxes and Taxing Jurisdictions

8. The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents. True False

9. A tax with a graduated rate structure must have at least two brackets of tax base. True False

10. A sales tax is an example of a transaction-based tax. True False

11. A tax on net income is an example of a transaction-based tax. True False

12. A sales tax is an example of an activity-based tax. True False

13. Ad valorem property taxes are the major source of revenue for local governments. True False

14. Taxes on personal property are more difficult to administer and enforce than taxes on real property. True False

15. A state government may levy either a sales tax or a use tax on consumers but not both. True False

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© 2014 by McGraw-Hill Education. This is proprietary material solely for...