Federal Income Taxes

Progressive taxes are based on the ability to pay.

• True
• False

An example of a regressive tax is the property tax.

• True
• False

Proportional taxes are based on a flat rate that does not change according toincome level.

• True
• False

Use of a tax preparer absolves you of any responsibility for an error on yourtax return.

• True
• False

The sole function of the Internal Revenue Service is the collection of income taxes.

• True
• False

The power to levy taxes rests with the Congress of the United States.

• True
• False

By designating $3 to go to the Presidential Election Campaign Fund, you areincreasing your tax liability by $3.

• True
• False

In a graduated tax system, tax rates increase as income increases.

• True
• False

In the U.S., responsibility for paying income taxes rests with the individual.

• True
• False

Tax evasion is a serious crime punishable by a fine or imprisonment or both.

• True
• False