Question 1

Capital gains are

Accepted Answer

A) treated exactly like other sources of income. 
B) taxed differently than other sources of income. 
C) generally not associated with a "lock-in effect." 
D) only realized at death. 
A) treated exactly like other sources of income. 
B) taxed differently than other sources of income. 
C) generally not associated with a "lock-in effect." 
D) only realized at death.

Question 2

How much do you believe that current tax policy is influenced by politics,as opposed to sound and efficient tax policy?

Accepted Answer

This is a personal question but,in gener

Question 3

The "making-work-pay" credit allows

Accepted Answer

A) credit for working. 
B) people to file taxes on April 19th. 
C) credit associated with learning. 
D) all of the above. 
A) credit for working. 
B) people to file taxes on April 19th. 
C) credit associated with learning. 
D) all of the above.

Question 4

Flat tax

Accepted Answer

A) is same tax rate to everyone. 
B) is same tax rate to each component of income. 
C) allows a tax base with no deductions with a few exemptions and expenses. 
D) is true for only a and b. 
E) all of the above. 
A) is same tax rate to everyone. 
B) is same tax rate to each component of income. 
C) allows a tax base with no deductions with a few exemptions and expenses. 
D) is true for only a and b. 
E) all of the above.

Question 5

The Haig-Simons definition of income

Accepted Answer

A) is measured over a given time. 
B) measures an individual's power to consume. 
C) is a net change measure. 
D) is all of the above. 
A) is measured over a given time. 
B) measures an individual's power to consume. 
C) is a net change measure. 
D) is all of the above.

Question 6

AGI is

Accepted Answer

A) found by subtracting certain business expenses from H-S income. 
B) found by subtracting exemptions from taxable income. 
C) not used in modern tax policy. 
D) none of the above. 
A) found by subtracting certain business expenses from H-S income. 
B) found by subtracting exemptions from taxable income. 
C) not used in modern tax policy. 
D) none of the above.

Question 7

Which of the following is an allowable deduction?

Accepted Answer

A) unreimbursed medical expenses that exceed 7.5% of AGI 
B) state and local income and property taxes 
C) interest on qualified education loans up to a certain limit 
D) all of the above 
A) unreimbursed medical expenses that exceed 7.5% of AGI 
B) state and local income and property taxes 
C) interest on qualified education loans up to a certain limit 
D) all of the above

Question 8

Martha Stewart earns $4,000 and she wants to save it for retirement,which is 10 years away.She can either save it in a taxable account or put it into a Roth IRA.Suppose that Martha can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent.By the time she reaches retirement,how much money would she have in either option?
NOTE: Martha has to pay tax on the $4,000,so she cannot put the full amount into either the taxable account or the Roth.

Accepted Answer

Roth IRA: $4,000(0.75)= $3,000

Question 9

Exemptions are more desirable than deductions for a person in the 36% tax bracket.

Accepted Answer

A) True 
 B)False

Question 10

Inflation

Accepted Answer

A) has no impact on taxing strategies. 
B) can be temporarily offset with tax cuts. 
C) only became a tax problem in the late 1990s. 
D) generally affects state governments most severely. 
A) has no impact on taxing strategies. 
B) can be temporarily offset with tax cuts. 
C) only became a tax problem in the late 1990s. 
D) generally affects state governments most severely.

Question 11

A tax credit

Accepted Answer

A) is not the same as a tax deduction. 
B) is another phrase for a tax deduction. 
C) is never calculated on federal tax returns. 
D) only applies to the EITC. 
A) is not the same as a tax deduction. 
B) is another phrase for a tax deduction. 
C) is never calculated on federal tax returns. 
D) only applies to the EITC.

Question 12

A 401(k)account means that the maximum amount of savings that can be deposited is $401,000.

Accepted Answer

A) True 
 B)False

Question 13

The Tax Reform Act of 1986 did all of the following,except

Accepted Answer

A) increase taxes on wealthy corporations. 
B) increase the standard deduction. 
C) raise the amount of the personal exemption. 
D) simplify tax filing for low income families. 
A) increase taxes on wealthy corporations. 
B) increase the standard deduction. 
C) raise the amount of the personal exemption. 
D) simplify tax filing for low income families.

Capital gains are

How much do you believe that current tax policy is influenced by politics,as opposed to sound and efficient tax policy?

The "making-work-pay" credit allows

Flat tax

The Haig-Simons definition of income

AGI is

Which of the following is an allowable deduction?

Exemptions are more desirable than deductions for a person in the 36% tax bracket.

Inflation

A tax credit

A 401(k)account means that the maximum amount of savings that can be deposited is $401,000.

The Tax Reform Act of 1986 did all of the following,except

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

Exam 17: The Personal Income Tax

Capital gains are

How much do you believe that current tax policy is influenced by politics,as opposed to sound and efficient tax policy?

The "making-work-pay" credit allows

Flat tax

The Haig-Simons definition of income

AGI is

Which of the following is an allowable deduction?

Exemptions are more desirable than deductions for a person in the 36% tax bracket.

Inflation

A tax credit

A 401(k)account means that the maximum amount of savings that can be deposited is $401,000.

The Tax Reform Act of 1986 did all of the following,except

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters