Learn Mode

Taxation Principles Quiz

Go to Quiz Page

Which of the following is a progressive tax?

Income tax

Explanation

Taxation rate increases as income rises.

What does VAT stand for in the context of taxation?

Value-Added Tax

Explanation

Tax levied at each stage of production based on value added.

What is the term used for the amount of tax imposed per unit of a good or service?

Tax rate

Explanation

Tax amount per unit of a product or service.

In which country was the world's first income tax introduced?

United Kingdom

Explanation

UK introduced the first income tax in the modern era.

What is the term used for the legal reduction of taxable income?

Tax deduction

Explanation

Amount subtracted from taxable income.

What is the tax rate applied to long-term capital gains for individuals in the United States?

20%

Explanation

Capital gains tax rate for investments held over a year.

Which of the following is NOT a principle of a good tax system?

Complexity

Explanation

Good tax systems aim for simplicity.

Which of the following taxes is typically paid by the employer and employee equally in the United States?

Social Security tax

Explanation

Both employer and employee contribute equally.

What is the term used for a tax that takes a larger percentage of income from low-income earners than from high-income earners?

Regressive tax

Explanation

Tax rates decrease as income rises.

#10

What is the term used for a tax on the value of a property or real estate?

Property tax

Explanation

Tax based on property's assessed value.

#11

Which tax system taxes individuals based on their ability to pay rather than the actual amount of income or wealth?

Progressive tax

Explanation

Tax rates increase as income/wealth increases.

#12

Which of the following statements is true about excise taxes?

They are typically imposed on specific goods like tobacco and alcohol

Explanation

Taxes on specific goods at production or sale.

#13

In which tax system does the tax rate decrease as the amount subject to taxation increases?

Degressive tax

Explanation

Tax rates decrease as taxable amount rises.

#14

Which of the following statements is true about property taxes?

They are proportional to the value of the property

Explanation

Tax amount increases with property value.

Taxation Principles Quiz

Which of the following is a progressive tax?

What does VAT stand for in the context of taxation?

What is the term used for the amount of tax imposed per unit of a good or service?

In which country was the world's first income tax introduced?

What is the term used for the legal reduction of taxable income?

What is the tax rate applied to long-term capital gains for individuals in the United States?

Which of the following is NOT a principle of a good tax system?

Which of the following taxes is typically paid by the employer and employee equally in the United States?

What is the term used for a tax that takes a larger percentage of income from low-income earners than from high-income earners?

What is the term used for a tax on the value of a property or real estate?

Which tax system taxes individuals based on their ability to pay rather than the actual amount of income or wealth?

Which of the following statements is true about excise taxes?

In which tax system does the tax rate decrease as the amount subject to taxation increases?

Which of the following statements is true about property taxes?

Test Your Knowledge