WGU C237 Taxation I, Exam Questions and answers, 100% Accurate. Graded A+ 2024

Tax. (CHAPTER 1) a payment required by a government that is unrelated to any specific benefit or service received from the government 3 Criteria Payment must be *Required (not INVOLUNTARY) *Imposed by a government agency (federal, state, local) *Not tied directly to the benefit received by the taxpayer - Continuous debate whom to tax, what to tax, how much to tax Sin Tax taxes imposed on the purchase of goods -e.g., alcohol, tobacco products - that are considered socially less desirable. Earmarked tax tax that is assessed for a specific purpose (e.g. education) simple tax formula Tax = Tax Base x Tax Rate Tax Base - the item that is being taxed (e.g., purchase price of a good, taxable income, fair market value for a property, etc.). Tax Rate - level of taxes imposed on the tax base and is usually expressed as a percentage Flat tax vs Graduated tax Flat tax (aka proportional tax) - A single tax rate applied through the tax base - Same rate for all taxpayers regardless of their income (sales tax) Graduated tax taxes in which the tax base is divided into a series of monetary amounts, or brackets, where each successive bracket is taxed at a different (gradually higher or lower) percentage rate. (e.g. income tax) Tax Rate structures