Question 1

The current federal tax structure has ______ tax brackets.

Accepted Answer

A)  5 
B)  6 
C)  7 
D)  8 
A)  5 
B)  6 
C)  7 
D)  8

Question 2

Which of the following is(are)indexed to inflation?

Accepted Answer

A)  Standard deduction 
B)  Employer contributions to pensions 
C)  Gifts and inheritances 
D)  None of the answer options are correct. 
A)  Standard deduction 
B)  Employer contributions to pensions 
C)  Gifts and inheritances 
D)  None of the answer options are correct.

Question 3

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)  all of these answer options are correct. 
A)  is measured over a given time. 
B)  measures an individual's power to consume. 
C)  is a net change measure. 
D)  all of these answer options are correct.

Question 4

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 5

Flat taxes are more equitable than graduated tax schedules.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 6

State and local income taxes should be deducted from federal income tax.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 7

Unreimbursed medical expenses in excess of 8.5% of AGI are tax deductible.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 8

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 9

The standard deduction for two individuals is higher than the standard deduction for a married couple,causing a "marriage tax."

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 10

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 11

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

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

The current federal tax structure has ______ tax brackets.

Which of the following is(are)indexed to inflation?

The Haig-Simons definition of income

Inflation

Flat taxes are more equitable than graduated tax schedules.

State and local income taxes should be deducted from federal income tax.

Unreimbursed medical expenses in excess of 8.5% of AGI are tax deductible.

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

The standard deduction for two individuals is higher than the standard deduction for a married couple,causing a "marriage tax."

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

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

The current federal tax structure has ______ tax brackets.

Which of the following is(are)indexed to inflation?

The Haig-Simons definition of income

Inflation

Flat taxes are more equitable than graduated tax schedules.

State and local income taxes should be deducted from federal income tax.

Unreimbursed medical expenses in excess of 8.5% of AGI are tax deductible.

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

The standard deduction for two individuals is higher than the standard deduction for a married couple,causing a "marriage tax."

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

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