WGU C237 Tax 1 2019 version| Questions With 100% Correct Answers | Verified

Two components of the tax calculation - tax base multiplied by the tax rate Characteristics of a "Tax" - Payment required - NOT VOLUNTARY Payment imposed by government agency (federal, state, local) Payment not tied directly to benefit received by the taxpayer 16th Amendment - removed all doubt that a federal income tax was allowed under the U.S. Constitution Horizontal equity - taxpayers in similar situations pay the same tax vertical equity - taxpayers in different situations pay the same tax Which rate (average, marginal, effective) is best to use in tax planning? - Marginal tax rate use tax - levied on goods owned, possessed, or consumed within a state that were not purchased within the state U.S. Federal Income Tax is what kind of tax system? - Progressive What represents the largest percentage of average state tax revenue? - Sales Tax What represents the largest portion of U.S. Federal Tax revenues? - Individual Income Taxes total tax/taxable income - average tax rate formula