WGU C237 TAXATION 1 ACTUAL EXAM QUESTIONS AND
WELL VERIFIED ANSWERS| HIGH YIELD QUESTIONS
AND ANSWERS | EXPERT GUARANTEE PASS AND 100%
ACCURATE | FREQUENTLY MOST TESTED QUESTIONS |
LATEST EXAM AND NEWEST VERSION!!!!
Tax
CORRECT ANSWER:
a required payment to a local, state, or national government unrelated to any
specific benefit or service received from the government
Key components of a tax
CORRECT ANSWER:
Not voluntary
Payment imposed by government
Payment not tied directly to benefit received by the taxpayer
U.S. constitution article 1, section 8. Clause 1
CORRECT ANSWER:
Congress had the right to lay taxes
16th Amendment (1913)
CORRECT ANSWER:
The Congress shall have power to lay and collect taxes on incomes, from
whatever source derived, without apportionment among the several States, and
without regard to any census or enumeration.
Criteria used to evaluate how good is a tax system
CORRECT ANSWER:
,1. Sufficiency
2. Equity
3. Certainty
4. Convenience
5. Economy
Sufficiency
CORRECT ANSWER:
involves assessing the aggregate size of the tax revenues that must be
generated and making sure that the tax system provides these revenues
Equity
CORRECT ANSWER:
How the tax burden should be distributes across taxpayers.
Certainty
CORRECT ANSWER:
means that taxpayers should be able to determine when to pay the tax, where to
pay the tax, and how to determine the tax
Convenience
CORRECT ANSWER:
tax system should be designed to be collected without undue hardship to the
taxpayer
Economy
CORRECT ANSWER:
Should minimize the compliance and administration cost associated with the tax
system
Tax rate
CORRECT ANSWER:
level of taxes imposed on the tax base and is usually expressed as a percentage
Tax base
CORRECT ANSWER:
,defines what is actually taxed and is usually expressed in monetary terms
Tax=
CORRECT ANSWER:
tax base x tax rate
Flat tax
CORRECT ANSWER:
a single tax applied to an entire base
Graduated tax
CORRECT ANSWER:
The base is divided into a series of monetary amounts, or brackets, and each
successive bracket is taxed at a different percentage rate
Marginal tax rate
CORRECT ANSWER:
The tax rate that applies to the next additional increment of a taxpayers taxable
income
Average tax rate
CORRECT ANSWER:
the taxpayer's average level of taxation on each dollar of taxable income
Effective tax rate
CORRECT ANSWER:
the taxpayer's average rate of taxation on each dollar of total income (both
taxable and non-taxable)
Proportional tax rate (Flat Tax)
CORRECT ANSWER:
imposes a constant tax rate throughout the tax base (income increases - tax rate
stays constant)
Progressive tax rate
CORRECT ANSWER:
, imposes an increasing marginal tax rate as the tax base increases
Regressive tax rate
CORRECT ANSWER:
imposes a decreasing marginal tax rate as the tax base increases social security
OASDI (Social Security)
CORRECT ANSWER:
Tax rate 6.2% for employee, 6.2% for employer.
If self implied you pay 12.4%
Medicare Tax
CORRECT ANSWER:
1.45% for employee, 1.45% for employer
If self employed you pay 2.9%
C corporation must file
CORRECT ANSWER:
Regardless of taxable income
All estate and trust must file
CORRECT ANSWER:
If gross income exceeds $600
All individuals must file
CORRECT ANSWER:
If their gross income is above their standard deductions
Individuals Tax Return Due Date
CORRECT ANSWER:
15th day of 4th month following end of tax year
C corporation tax return due date
CORRECT ANSWER:
Generally 15Th day of the 4Th month following end of tax year (exception for C
corp. with June 30 year-end-due 15Th day of 3rd month)
WELL VERIFIED ANSWERS| HIGH YIELD QUESTIONS
AND ANSWERS | EXPERT GUARANTEE PASS AND 100%
ACCURATE | FREQUENTLY MOST TESTED QUESTIONS |
LATEST EXAM AND NEWEST VERSION!!!!
Tax
CORRECT ANSWER:
a required payment to a local, state, or national government unrelated to any
specific benefit or service received from the government
Key components of a tax
CORRECT ANSWER:
Not voluntary
Payment imposed by government
Payment not tied directly to benefit received by the taxpayer
U.S. constitution article 1, section 8. Clause 1
CORRECT ANSWER:
Congress had the right to lay taxes
16th Amendment (1913)
CORRECT ANSWER:
The Congress shall have power to lay and collect taxes on incomes, from
whatever source derived, without apportionment among the several States, and
without regard to any census or enumeration.
Criteria used to evaluate how good is a tax system
CORRECT ANSWER:
,1. Sufficiency
2. Equity
3. Certainty
4. Convenience
5. Economy
Sufficiency
CORRECT ANSWER:
involves assessing the aggregate size of the tax revenues that must be
generated and making sure that the tax system provides these revenues
Equity
CORRECT ANSWER:
How the tax burden should be distributes across taxpayers.
Certainty
CORRECT ANSWER:
means that taxpayers should be able to determine when to pay the tax, where to
pay the tax, and how to determine the tax
Convenience
CORRECT ANSWER:
tax system should be designed to be collected without undue hardship to the
taxpayer
Economy
CORRECT ANSWER:
Should minimize the compliance and administration cost associated with the tax
system
Tax rate
CORRECT ANSWER:
level of taxes imposed on the tax base and is usually expressed as a percentage
Tax base
CORRECT ANSWER:
,defines what is actually taxed and is usually expressed in monetary terms
Tax=
CORRECT ANSWER:
tax base x tax rate
Flat tax
CORRECT ANSWER:
a single tax applied to an entire base
Graduated tax
CORRECT ANSWER:
The base is divided into a series of monetary amounts, or brackets, and each
successive bracket is taxed at a different percentage rate
Marginal tax rate
CORRECT ANSWER:
The tax rate that applies to the next additional increment of a taxpayers taxable
income
Average tax rate
CORRECT ANSWER:
the taxpayer's average level of taxation on each dollar of taxable income
Effective tax rate
CORRECT ANSWER:
the taxpayer's average rate of taxation on each dollar of total income (both
taxable and non-taxable)
Proportional tax rate (Flat Tax)
CORRECT ANSWER:
imposes a constant tax rate throughout the tax base (income increases - tax rate
stays constant)
Progressive tax rate
CORRECT ANSWER:
, imposes an increasing marginal tax rate as the tax base increases
Regressive tax rate
CORRECT ANSWER:
imposes a decreasing marginal tax rate as the tax base increases social security
OASDI (Social Security)
CORRECT ANSWER:
Tax rate 6.2% for employee, 6.2% for employer.
If self implied you pay 12.4%
Medicare Tax
CORRECT ANSWER:
1.45% for employee, 1.45% for employer
If self employed you pay 2.9%
C corporation must file
CORRECT ANSWER:
Regardless of taxable income
All estate and trust must file
CORRECT ANSWER:
If gross income exceeds $600
All individuals must file
CORRECT ANSWER:
If their gross income is above their standard deductions
Individuals Tax Return Due Date
CORRECT ANSWER:
15th day of 4th month following end of tax year
C corporation tax return due date
CORRECT ANSWER:
Generally 15Th day of the 4Th month following end of tax year (exception for C
corp. with June 30 year-end-due 15Th day of 3rd month)
