Question

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 ___________________________________________________________________________________

Answer 1

1). The statment is; "FALSE"

Comparative Tax Law, now presented in an updated new edition, focuses on the essential patterns of tax law in different jurisdictions across the globe. Although the details of tax law are literally endless differing not only from jurisdiction to jurisdiction but also from day-to-day changes in the working of the system structures and patterns exist across tax systems that can be understood with relative ease.

2). The statment is; "FALSE"

Personal income is used in calculating adjusted gross income (AGI) which is important to individuals for income tax purposes. It is also an essential measure to investors because it serves as an indicator of future demand for both goods and services in the market. If personal income is high, there could be more money spent in the economy, indicating a future business boom.

3). The statment is; "FALSE"

A regressive tax, a tax that imposes a smaller burden (relative to resources) on those who are wealthier. Its opposite, a progressive tax, imposes a larger burden on the wealthy. A change to any tax code that renders it less progressive is also referred to as regressive. If regressivity is part of a proposed tax, it can often become the focus of a political argument against that tax, even if regressivity is a by-product rather than the intention of the tax. Consequently, the chief examples of specific regressive taxes are those on goods whose consumption society wishes to discourage, such as tobacco, gasoline, and alcohol. These are often called “sin taxes.”