#1
Which of the following is not a type of taxation?
Income Tax
Value Added Tax (VAT)
Profit Tax
Investment Tax
#2
What does VAT stand for in taxation?
Value Added Tax
Variable Annual Tax
Voluntary Assessment Tax
Vested Asset Tax
#3
Which of the following statements is true about progressive taxation?
It imposes a higher tax rate on lower incomes.
It imposes a lower tax rate on lower incomes.
It imposes a flat tax rate on all incomes.
It imposes a higher tax rate on higher incomes.
#4
What is the primary purpose of tax deductions?
To increase the tax burden on individuals.
To encourage certain behaviors or activities.
To simplify tax filing processes.
To reduce government revenue.
#5
What is the term for a tax imposed on the transfer of property by inheritance?
Estate Tax
Income Tax
Sales Tax
Property Tax
#6
Which of the following is an example of an indirect tax?
Income Tax
Property Tax
Excise Tax
Estate Tax
#7
What is the term for a tax that applies the same tax rate to every taxpayer, regardless of income or other factors?
Progressive Tax
Regressive Tax
Proportional Tax
Excess Tax
#8
What does FICA stand for in the context of taxation in the United States?
Federal Income Credit Assessment
Federal Insurance Contributions Act
Federal Interest and Contribution Assessment
Federal Income Calculation Act
#9
Which of the following is an example of a regressive tax?
Sales Tax
Corporate Income Tax
Capital Gains Tax
Progressive Tax
#10
Which tax form is typically used by individuals to file their income taxes in the United States?
Form 1099
Form W-2
Form 1040
Form 990
#11
Which of the following is considered a tax credit?
A deduction from taxable income
A refund of taxes already paid
An amount subtracted directly from taxes owed
An additional tax liability
#12
What is the purpose of a sin tax?
To discourage behaviors deemed harmful to society
To encourage charitable donations
To fund infrastructure projects
To reduce the national debt
#13
In the United States, which entity is responsible for collecting federal income taxes?
Internal Revenue Service (IRS)
Department of Treasury
Federal Reserve
Securities and Exchange Commission (SEC)
#14
What is the purpose of a tax treaty between countries?
To impose higher taxes on foreign entities
To prevent tax evasion
To decrease government revenue
To increase tariffs on imports
#15
In the context of tax planning, what is the purpose of tax deferral?
To delay the payment of taxes to a later date
To avoid paying taxes altogether
To increase the tax burden
To simplify tax filing processes
#16
What is a tax haven?
A country with extremely high tax rates
A location where taxes are paid in full
A jurisdiction with favorable tax laws for non-residents
A region with no taxation policies