Test Bank for Income Tax Fundamentals 36th Edition

Test Bank for Income Tax Fundamentals 36th Edition 1. Which of the following is not a goal of the tax law? a. Encouraging certain social goals such as contributions to charity. b. Encouraging certain economic goals such as a thriving business community. c. Encouraging smaller families. d. Raising revenue to operate the government. e. None of the above are goals of the tax law. ANSWER: c 2. Which one of the following provisions was passed by Congress to meet a social goal of the tax law? a. The deduction for job hunting expenses. b. The charitable deduction. c. The moving expense deduction for adjusted gross income. d. The deduction for soil and water conservation costs available to farmers. e. None of the above. ANSWER: b 3. List two general objectives of the tax code. ANSWER: The tax code promotes social goals, economic goals and raising revenue. 4. Mark a “Yes” to each of the following if it is an objective of the tax code. Otherwise mark with a “No.” a. To provide a car to each American. b. To promote giving to charities. c. To encourage taxpayers to send their children to college. d. To raise money to operate the government. e. To promote the use of solar energy. ANSWER: a. No b. Yes c. Yes d. Yes e. Yes 5. The U.S. federal tax law's sole purpose is to raise revenue. a. True b. False ANSWER: False 6. Which of the following is not a goal of the tax law? a. Ensuring that all persons pay the same amount of tax. b. Economic goals such as reduction in unemployment. c. Social goals such as lowering the cost of adoption. d. Raise adequate revenue to operate the government. ANSWER: a