Federal Taxation Chapter 1 Exam Questions with Correct Answers

Corporate Tax Correct Answer Can be as high as 35% Individual Correct Answer Can be over 40% Tax Laws Correct Answer are often used to achieve social and economic objectives Federal Income Tax Correct Answer The dominant form of taxation in the United States Income Tax Correct Answer Most states and some cities and countries also impose 1913 Correct Answer The date of enactment of the modern-day federal income tax, by ratifying the 16th ammendment 1861 Correct Answer The first federal income tax on individuals was enacted at this time to finance the Civil War 1894 Correct Answer Federal income tax was enacted at this time, however it was challenged in the courts because the U.S. Constitution required taxes be apportioned among states proportion to their populations 1895 Correct Answer The supreme court ruled that the tax was a violation of the U.S. Constitution. Sixteenth Amendment of the Constituion Correct Answer The congress shall have the power to lay and collect taxes on incomes, from whatever sources derived, without apportionment among several states, without regard to any census or enumeration 1939 Correct Answer A permanent tax code was established 1954, and 1986 Correct Answer The tax code was revised 1943 Correct Answer Congress enacted the pay-as- you go withholding Incremental Basis Correct Answer The federal income tax law is change on an