Question

True or False? If False, please correct.

1,Comparative tax ranking studies provide accurate assessments of a state’s tax policy goals. True/False ____________________ Correction to make true ___________________________________________________________________________________

2. When looking at tax personal income of individuals, most states define their tax base by using Federal taxable income as the state tax base. True/False ____________________ Correction to make true ___________________________________________________________________________________

3. An example of a regressive “tax” is the implicit tax rate that is realized by a State in the sale of lottery tickets. True/False ___________________ Correction to make true ___________________________________________________________________________________

4. A progressive tax policy cannot be achieved with the enactment of tax credits that are targeted to individuals based on their income level. True/False _____________ Correction to make true ____________________________________________________________________________________

5. Statutory and Economic Incidence when analyzing tax policy options are always the same thing. True/False ________________ Correction to make true ____________________________________________________________________________________

6. Moving to a jurisdiction which has a lower state and local tax burden reflects the general rule for tax policy analysis. True/False ________________ Correction to make true

Answer 1

Answer:1.Comparative tax ranking studies provide accurate assessments of a state tax policy goals.True

2.When looking at tax personal income of individuals,most state define their tax base by using Federal taxable income as the state tax base.True

3.An example of regressive "tax" is the implicit tax rates that is realised by a State in the sale of lottery tickets.True

4.A progressive tax policy cannot be achieved with the enactment of tax credits that are targeted to individuals based on their income levels.False

Correction-A progrssive is a tax in which the tax rate increases as the taxable amount increases.High income individual needs to pay disproportionate share of tax burden while low income taxpayers have relatively small tax burden

5.Statutory and Economic Incidence when analyzing tax policy options are always the same thing.False

Correction-In statutory incidence the tax need to pay by the party that sends the check to the government.While in Economic incidence is the burden of taxation measured by the change in resources available to any economic agent.

6.Moving to a jurisdiction which has a lower state and local tax burden reflects the general rule of tax policy analysis.False

Correction-Lot of things need to consider if you are moving to a state which has lower taxes.For example In Washington,no personal tax need to pay but heavy amount need to pay if you die there.Nevada has no personal tax,no death tax and low sales tax in manu jurisdiction.