A:
Chapter 9 Questions
1. List and describe the 4 Economic Impacts of Taxes.
2. Define sin tax:
3. Define incidence of a tax:
4. List and describe the 3 Criteria for Effective Taxes
5. What is a tax loophole?
6. What is an individual’s income tax?
7. Define a tax return:
8. What is a sales tax?
B:
9. What is the Benefit Principle of Taxation?
10. What are the two limitations of the Benefit Principle?
11. Give an example of a taxation that is based on the Benefit Principle.
12. What is the Ability-to-Pay Principle of Taxation?
13. What two factors is the Ability-to-Pay Principle based on?
14. Give an example of a taxation that is based on the Ability-to-Pay Principle.
C:
15. What does the IRS do for us?
16. What is the main source of federal government revenue?
17. What type of tax is social security and Medicare? Explain what type of tax it
is.
18. What does FICA stand for?
19. How important is borrowing in terms of federal government revenue today?
20. What is an excise tax? Give examples.
D:
21. What is the largest source of state revenue?
22. What is sales tax?
23. What are the 7 states that do not rely on the individual income tax for
revenue? List 3.
24. Whom is the tax assessor?
25. What is the second-largest source of revenue for local governments?
26. What is an important source of local government funding?
E:
27)
What is payroll withholding statement? And where are most federal, state,
and local taxes deducted from?
28)
What did the recovery tax act do?
29)
Before the Recovery Tax Act there were 16 marginal tax brackets, how many
marginal tax brackets are there today?
30)
What is accelerated depreciation and investment tax credit?
31)
What is the alternative minimum tax?
32)
What happened in the Tax Reform in 2003?
33)
What is value-added tax?