WGU C237 Taxation I| Questions With 100% Correct Answers | Verified

Describe the history of taxation in the US - 1861 - to finance civil war 1894 - Income tax reinstated but ruled unconstitutional 1895 1913 - 16th amendment 1940 - WWII mass tax 1943 - pay as you go withholding 1986 - Internal Revenue Code Identify the sources of tax law - Legislative Branch - Internal Revenue Code (Top) - Congressional Committee Reports Executive - Income Tax Regulations - Revenue Rulings - Revenue Procedures - Letter Rulings Judicial - Court Decisions Describe the criteria of an equitable tax structure - Equity - equality Certainty - Stability and certainty of amount of taxes Convenience - no burden of records and compliance Economy- minimal compliance and administrative costs Simplicity - understandability Describe the structure of individual income tax rates - Progressive - tax increases as tax base increases Proportional - flat tax