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ACC 307 WK 5 Midterm Exam Chapter 1

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CHAPTER 1 Student: ___________________________________________________________________________ 1. The ratification of the Sixteenth Amendment to the U.S. Constitution was necessary to validate the Federal income tax on corporations.  True    False   2. Before the Sixteenth Amendment to the Constitution was ratified, there was no valid Federal income tax on individuals.  True    False   3. The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution) levied tax rates from a low of 2% to a high of 6%.  True    False   4. The Federal income tax on individuals generates more revenue than the Federal income tax on corporations.  True    False   5. The pay-as-you-go feature of the Federal income tax on individuals conforms to Adam Smith’s canon of certainty.  True    False   6. Because the law is complicated, most individual taxpayers are not able to complete their Federal income tax returns without outside assistance.  True    False   7. The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase.  True    False   8. The Federal estate and gift taxes are examples of progressive taxes.  True    False   9. The Federal excise tax on cigarettes is an example of a proportional tax.  True    False   10. Currently, the Federal income tax is more progressive than it ever has been in the past.  True    False   11. Mona inherit ...
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