LSU ACCT 3221 Chapter 1
True/False: The U.S. individual income tax system is an example of a progressive tax
rate structure.
True
True/False: A proportional tax rate structure is a tax where the tax rate remains at the
same rate regardless of the tax base.
True
True/False: Under a flat tax, the marginal tax rate and the average tax rate are different.
False
True/False: State and local taxes levied on either property or sales are examples of
progressive taxes.
False
True/False: With a regressive tax, the tax rate decreases as the tax base gets larger.
True
True/False: The marginal tax rate is the total tax liability divided by the taxable income.
False
True/False: The average tax rate is the total tax liability divided by the taxable income.
True
True/False: All individual income tax returns follow the structure of the simplified tax
formula.
True
True/False: The average tax rate is always smaller than the marginal tax rate.
False
True/False: At high levels of taxable income, the average tax rate and the marginal tax
rate will be the same.
False
True/False: Wages, salaries, and tips are compensation for services rendered.
However, commissions, bonuses, and severance pay are not taxable.
False
True/False: Federal unemployment compensation benefits are not taxable.
False