WHICH, IF ANY, OF THE FOLLOWING STATEMENTS BEST DESCRIBES THE HISTORY OF THE FEDERAL INCOME TAX?

IT EXISTED DURING THE CIVIL WAR More test answers on https://studyhippo.com/acct-308-ch1/

US federal income tax is progressive by law, but which best explains why is it sometimes regressive in practice?

High-income earners use tax laws to their advantage to reduce their tax rates. More test answers on https://studyhippo.com/public-and-private-solutions-unit-test-review/

An amount of an employee’s gross pay which is exempt from federal income tax withholding is a(n)

withholding allowance. More test answers on https://studyhippo.com/accounting-c100/

Which of the following is not a true statement regarding municipal bonds? A municipal bond is a debt obligation issued by state or local governments. A municipal bond is a debt obligation issued by the Federal Government. The interest income from a municipal bond is exempt from federal income taxation. The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

A municipal bond is a debt obligation issued by the Federal Government. More test answers on https://studyhippo.com/chapter-2-3-43032/

Identify three institutions that are exempt from the federal income tax?

Churches,unions,non profit organizations More test answers on https://studyhippo.com/p-572-573-chapter-20-review/

The two accounts used to record the adjustment for federal income tax are

Federal Income Tax Payable and Federal Income Tax Expense More test answers on https://studyhippo.com/chapter-14-analyzing-adjustments-on-a-work-sheet/

The United States’ federal income tax is a progressive tax plan. So the more money you make, the more you share with Uncle Sam.

Which federal income tax system do you think is used in the United States? More test answers on https://studyhippo.com/2-03-sharing-with-uncle-sam/

Which form do employers use to calculate the amount of federal income tax to be withheld from your paycheck?

W-4 More test answers on https://studyhippo.com/test-4-epf/

What does not describe the history of the Federal income tax?

-It did not exist during the Civil War. -Both the Federal income tax on individuals and on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution. -The Federal income tax on individuals was held by the U.S. Supreme Court to be allowable under the U.S. Constitution. More test answers on https://studyhippo.com/acct-307-ch-1-online-quiz/

Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the following statements is CORRECT? a. Relaxant’s shareholders (the ex-partners) will now be exposed to less liability. b. The company will probably be subject to fewer regulations and required disclosures. c. Assuming the firm is profitable, none of its income will be subject to federal income taxes. d. The firm’s investors will be exposed to less liability, but they will find it more difficult to transfer their ownership. e. The firm will find it more difficult to raise additional capital to support its growth.

a. Relaxant’s shareholders (the ex-partners) will now be exposed to less liability. More test answers on https://studyhippo.com/mc-1/

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Federal Income Tax Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Federal Income Tax and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Federal Income Tax and get quick solutions for your test.

What is Federal Income Tax?

The Federal Income Tax has been a part of the American landscape since the passage of The Revenue Act of 1862 during the Civil War. This law imposed a three percent tax on all incomes over $800, and was used to fund the Union’s war effort. Since then, the federal income tax has become an integral part of our lives and is used to fund many government programs and services that benefit all Americans. The current system for calculating federal income taxes is based on progressive taxation. This means that as your income increases, so does your taxable rate. The more you make, the higher percentage of your income you are required to pay in taxes. There are also deductions and credits that can be taken which can reduce your total amount owed at the end of each year. The purpose of federal income taxes is to provide revenue for government operations such as Social Security, Medicare/Medicaid, defense spending, education spending and other public services like roads and infrastructure projects. Without this revenue from taxes, it would be impossible for our government to function properly or provide essential services to its citizens. It is also important for fairness those with higher incomes should pay higher rates than those with lower incomes in order to keep everyone paying their fair share into society’s coffers. Although paying federal income taxes is sometimes inconvenient or difficult for some taxpayers, it is ultimately an important source of revenue needed by our government in order to keep running smoothly and providing quality services to its citizens. Without it there would be no way for us as individuals or as a nation to invest in our own economic prosperity or future success.

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