100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
SOLUTIONS MANUAL FOR FUNDAMENTALS OF TAXATION 16TH EDITION BY CRUZ TEST BANK ALL CHAPTERS INCLUDED || LATEST AND COMPLETE UPDATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+$22.99
SOLUTIONS MANUAL FOR FUNDAMENTALS OF TAXATION 16TH EDITION BY CRUZ TEST BANK ALL CHAPTERS INCLUDED || LATEST AND COMPLETE UPDATE 2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
FUNDAMENTALS OF TAXATION 16TH EDITION BY
CRUZ TEST BANK ALL CHAPTERS INCLUDED || LATEST AND COMPLETE UPDATE
2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
SOLUTIONS MANUAL FOR FUNDAMENTALS OF
TAXATION 16TH EDITION BY CRUZ TEST BANK ALL
CHAPTERS INCLUDED || LATEST AND COMPLETE
UPDATE 2025 WITH VERIFIED SOLUTIONS||
GUARANTEED A+
,SOLUTIONS MANUAL FOR FUNDAMENTALS OF TAXATION 16TH EDITION BY
CRUZ TEST BANK ALL CHAPTERS INCLUDED || LATEST AND COMPLETE UPDATE
2025 WITH VERIFIED SOLUTIONS|| GUARANTEED A+
CHAPTER 01: SOLUTIONS END OF CHAPTER MATERIAL
Discussion Questions
1. (Introduction) Give a brief history of the income tax in the United States.
ANSWER:
The first federal income tax was enacted in 1861 to help finance the Civil War and was discarded soon thereafter. In
1894, another income tax was promulgated by Congress to raise additional tax revenue and to expand the sources of
revenue. In 1895, the Supreme Court ruled that the federal income tax was unconstitutional. In 1913, the sixteenth
Amendment to the U.S. Constitution was enacted. This amendment gave Congress the power to levy and collect
taxes. In 2020, the federal government collected about $1.75 trillion in individual income taxes.
Feedback:
Learning Objective: Introduction Topic: Income tax history Difficulty: 1 Easy
EA: No
2. (Introduction) For tax year 2020, what proportion of individual income tax returns was electronically filed? Use
Table 1-1.
ANSWER:
In 2020, electronically filed tax returns were about 94.25% of total returns.
Feedback: Calculated from Table 1-1 Learning Objective: Introduction Topic: Income tax data
Difficulty: 2 Medium EA: No
3. Name the three types of tax rate structures and give an example of each.
ANSWER:
Progressive – U.S. federal income tax
Proportional – “flat-tax” usually levied on property or sales at the state or local level
Regressive – Social security tax Feedback:
Learning Objective: 01-01
,Topic: Tax rate structure Difficulty: 1 Easy
EA: No
4. What is a progressive tax? Why do you think the government believes it is a more equitable tax than, say, a
regressive tax or proportional tax?
ANSWER:
A progressive rate structure is a structure where the tax rate increases as the tax base increases. The progressive
rate structure is viewed as more equitable because the amount of tax paid varies with the ability to pay. For
example, the government believes that as an individual makes more income, a smaller percentage of that income is
needed to buy necessary living supplies and thus more income is available to pay taxes.
Feedback:
Learning Objective: 01-01 Topic: Tax rate structure Difficulty: 2 Medium
EA: No
5. What type of tax is a sales tax? Explain your answer.
ANSWER:
The sales tax is a proportional tax. A proportional tax is a tax where the tax rate remains the same regardless of the
tax base. Most county or state sales tax rates are the same regardless of the amount of sales upon which the tax is
levied. With a proportional tax, the marginal tax rate and average tax rate are always the same.
Feedback:
Learning Objective: 01-01 Topic: Tax rate structure Difficulty: 1 Easy
EA: No
6. What is the definition of tax base, and how does it affect the amount of tax levied?
ANSWER:
The tax base is the dollar amount upon which the tax rate is applied in order to determine the actual tax. Income,
dollar sales, and property value are the more common tax bases in the United States.
, Feedback:
Learning Objective: 01-01 Topic: Tax base
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TESTSEXPERT. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $22.99. You're not tied to anything after your purchase.
