C239 Advanced Tax Concepts Questions with
100% Correct Answers
Progressive Tax Rate
Rate that increases as the tax base increases
Proportional Tax Rate
Rate that is constant regardless of the size of the tax base
Regressive Tax Rate
Rate decreases as the tax base increases
Statutory Tax Rate
Rate specified in the law
Marginal Tax Rate
Rate applicable to the next dollar of income
Average Tax Rate
Equal to the tax liability divided by taxable income
Effective Tax Rate
Equal to the taxes paid divided by the taxpayers ability to pay
Gift Tax
Tax imposed on the transfer of property by gift
What is treated as a partnership?
LLC
100% Correct Answers
Progressive Tax Rate
Rate that increases as the tax base increases
Proportional Tax Rate
Rate that is constant regardless of the size of the tax base
Regressive Tax Rate
Rate decreases as the tax base increases
Statutory Tax Rate
Rate specified in the law
Marginal Tax Rate
Rate applicable to the next dollar of income
Average Tax Rate
Equal to the tax liability divided by taxable income
Effective Tax Rate
Equal to the taxes paid divided by the taxpayers ability to pay
Gift Tax
Tax imposed on the transfer of property by gift
What is treated as a partnership?
LLC
