Question

1.the object of a tax, which may include income, property, the value of goods sold is defined as the

tax rate

tax base

tax activity

tax fee

2. which of the following is a tax on wealth?

income tax

property tax

sales tax

excise tax

3. In judging the merits of a tax it is important to consider

if the tax burden is justly distributed(equity)

if the tax burden improves the allocation of resources

it the tax is enforceable

all of the above

none of the above

4. the benefit principle in taxation argues

an increase in the tax burden always benefits society

only by reducing the tax burden will benefits to society increase

individuals should be taxed according to the benefits they receive

individuals should never be taxed regardless of the benefits they receive

only government bureaucrats benefit from taxation

5. the best measure of the tax burden on personal income is the

marginal tax rate

average tax rate

highest marginal tax rate paid by the household

marginal divided by the average tax rate

Answer 1

1. A total amount of assets or income that can be taxed by the authority is called tax base. Therefore, the object of a tax, which may include income, property, the value of goods sold is defined as the Tax base.

A tax rate is the percentage at which an individual or corporation is taxed.

Tax activity is the activity statement by which an individual or corporation can make payment and report his obligations under the tax system.

A tax fee is the the cost that is assessed and collected by a lender to ensure that mortgagors pay their property taxes on time.

Therefore, the answer is tax base

2. We may consider property tax a form of wealth tax since the government taxes the same asset year over year. Therefore, the answer is property tax.

3. In judging the merits of a tax it is important to consider

Fairness- where the tax burden is justly distributed

Adequacy - where the tax burden improves the allocation of resources

and the tax is enforceable

Therefore the answer is all of the above.

4. The benefit principle in taxation argues

individuals should be taxed according to the benefits they receive

5. The best measure of the tax burden on personal income is the

highest marginal tax rate paid by the household.