WGU C237 Tax 1 2019 version Latest Update(RATED A)

Two components of the tax calculation -ANSWER tax base multiplied by the tax rate Characteristics of a "Tax" -ANSWER Payment required - NOT VOLUNTARY Payment imposed by government agency (federal, state, local) Payment not tied directly to benefit received by the taxpayer 16th Amendment -ANSWER removed all doubt that a federal income tax was allowed under the U.S. Constitution Horizontal equity -ANSWER taxpayers in similar situations pay the same tax vertical equity -ANSWER taxpayers in different situations pay the same tax Which rate (average, marginal, effective) is best to use in tax planning? -ANSWER Marginal tax rate use tax -ANSWER levied on goods owned, possessed, or consumed within a state that were not purchased within the state U.S. Federal Income Tax is what kind of tax system? -ANSWER Progressive What represents the largest percentage of average state tax revenue? -ANSWER Sales Tax What represents the largest portion of U.S. Federal Tax revenues? -ANSWER Individual Income Taxes