taxation A-B

Taxation is the process by which:

• A. The government imposes penalties on businesses

• B. The government collects funds from citizens for public purposes
  

• C. Private organizations raise funds

• D. Businesses pay fees for government services

Which of the following is NOT an essential characteristic of a tax?

• A. It must be voluntary

• B. It must be proportionate

• C. It must be levied by the government

• D. It must be for a public purpose

The power to tax is considered:

• A. Optional for governments

• B. A privilege given to the executive branch

• C. An inherent power of sovereignty

• D. Delegated to private corporations

The basis of taxation is the reciprocal duty of:

• A. Businesses and consumers

• B. The government and taxpayers

• C. Employers and employees

• D. The judiciary and legislature

What is an example of a direct tax?

• A. Sales Tax

• B. Value-Added Tax (VAT)

• C. Income Tax

• D. Customs Duty

What type of tax is imposed on the transfer of property after a person’s death?

• A. Property Tax
  

• B. Estate Tax

• C. Income Tax

• D. Capital Gains Tax

A tax that is based on the value of the property or transaction is called:

• A. Specific Tax

• B. Ad Valorem Tax

• C. Excise Tax

• D. Poll Tax

Which of the following is an example of an indirect tax?

• A. Corporate Tax

• B. Income Tax

• C. Sales Tax

• D. Estate Tax

The principle of Fiscal Adequacy means:
A. Taxes should be applied equally to all citizens
B. Taxes must be collected only from businesses
C. Tax revenue should be sufficient to cover government expenses
D. Taxes should not be imposed on government entities

• A. Taxes should be applied equally to all citizens

• B. Taxes must be collected only from businesses

• C. Tax revenue should be sufficient to cover government expenses

• D. Taxes should not be imposed on government entities

The purpose of the Uniformity Rule in taxation is to ensure that:
A. All citizens pay the same amount of tax
B. Tax laws apply equally to all persons in the same class
C. The government can freely impose new taxes
D. Only corporations are subject to taxation

• A. All citizens pay the same amount of tax

• B. Tax laws apply equally to all persons in the same class

• C. The government can freely impose new taxes

• D. Only corporations are subject to taxation