Taxation Exam Study Written Questions And Answers Guaranteed Pass.
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Course
TAX.
Institution
TAX.
Warm-Up
Type your response in the box.
As you read the following paragraph, think about the purpose and idea behind the taxes discussed. Then answer the question that follows.
Ty just received a job offer in a new city. He is married with two small children. He and his wife go to visit the...
As you read the following paragraph, think about the purpose and idea behind the taxes discussed. Then
answer the question that follows.
Ty just received a job offer in a new city. He is married with two small children. He and his wife go to
visit the city and find a place to live. Their children will be in school in a few years. While on the trip,
they visit a beautiful public park for the kids. They encounter one type of tax when they buy a few
souvenir T-shirts: the shirts are on sale for $10, but Ty ends up paying $11.00 after the sales tax is added.
Later, they encounter a second type of tax. When Ty and his wife meet with their real estate agent, the
agent tells them that the property taxes they will pay on their new home are higher than the taxes on
their old home. However, the agent says the government funds the schools in the area well, and the
schools are high quali - correct answer SAMPLE ANSWER:
Ty and his wife paid a sales tax on the T-shirts they bought. That money probably helps fund the public
park they visited. Similarly, they will pay money to the government in the form of property taxes, and
some of that money will fund the local schools.
Types of Taxes
Ty and his wife paid sales tax when they bought T-shirts, and they will pay property taxes on their house.
Let's look at the various types of taxes and the costs and benefits of these taxes.
Taxes are inevitable because we expect the government to provide many services and facilities. As
Benjamin Franklin said, nothing is certain but death and taxes.Every individual must pay taxes at some
time in some way. But taxes have both costs and benefits attached to them. The leakage in our income
in the form of taxes is injected into the economy through government expenditures.
The impact of taxes is not the same for every individual, however. Governments design some taxes to
have a greater impact on particular income groups while other taxes are designed to affect everyone
equally. - correct answer
expenditures - correct answer the amount spent on purchases
, Type your response in the box.
Read this scenario, and then answer the question that follows.
Mark and Julia are two working individuals in their early 20s. They are each ready to furnish their first
apartment after college and are excited to buy new televisions for their respective living rooms.
Mark has saved money from his $25,000 annual salary to buy a new television, and Julia has saved
money from her $100,000 annual salary for the same purpose. They both choose the same TV, which
costs $1,000. Since they buy their TVs in the same town, they each pay 10 percent in sales tax, bringing
the total cost for each TV to $1,100.
Who feels a greater effect from the 10 percent sales tax, Mark or Julia? Why? - correct answer
Sample Answer:
While they both pay the same amount, the tax affects Mark more because he earns significantly less
than Julia does.
debt - correct answer the amount owed by a borrower to a lender
Article 1, section 8, of the Constitution - correct answer Gives the government the
right to collect taxes. Also grants Congress the power to determine how to spend the taxes it collects.
Congress should collect taxes only for two purposes— - correct answer to pay its
debts and to pay for defense and the general welfare of its citizens.
Congress also has the power to levy taxes on imports. - correct answer must apply
uniformly to every state.
Until ______, the federal government collected only excise taxes and duty (taxes) on imported goods. -
correct answer 1913
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