WGU C237 - Taxation One Prep for OA, Exam Questions and answers, 100% Accurate, VERIFIED 2024

The two components of tax calculation are the tax rate and the taxpayers status - -FALSE What is the components of the tax calculation - -Tax rate & tax base The 9th Amendment to the U.S. Constitution removed all doubt that a federal income tax was allowed under the U.S. Constitution. - -FALSE Horizontal equity is defined in terms of taxpayers in similar situations whereas vertical equity is defined in terms of taxpayers in different situations. - -TRUE In considering the "economy" criterion in evaluating tax systems, one must consider this criterion from both the taxpayer and the government's perspective. - -TRUE A taxpayer's average tax rate is the most appropriate tax rate to use in tax planning. - -FALSE The effective tax rate, in general, provides a better depiction of a taxpayer's tax burden than the average tax rate. - -TRUE In a proportional (flat) tax rate system, the marginal tax rate will always equal the average tax rate - - TRUE In a regressive tax rate system, the marginal tax rate will often be greater than the average tax rate. - -FALSE A common example of an employment related tax is the Medicare tax. - -TRUE