1. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Que
Many states have balanced budgets because laws or constitutional amendments preclude deficit spending.
a. True
b. False
2. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q 2
The U.S. Federal government has a provision in the Constitution which precludes deficit spending.
a. True
b. False
3. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q 3
Revenue-neutral tax laws reduce deficits.
a. True
b. False
4. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q 4
Longer class lives for depreciable property and the required use of straight-line method of depreciation should dampen the tax incentive for purchasing capital assets.
a. True
b. False
5. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q 5
The Internal Revenue Code is a compilation of Federal tax legislation that appears in Title 28 of the Internal Revenue Code.
a. True
b. False
6. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q 6
Income from patents can qualify for capital gain treatment.
a. True
b. False
7. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q 7
Saving leads to capital formation and thus makes funds available to finance home construction and industrial expansion.
a. True
b. False
8. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q 8
The corporate tax rate of 34 percent applies only to taxable income in excess of $75,000.
a. True
b. False
9. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q 9
The earned income tax credit is refundable.
a. True
b. False
10. CHAPTER 1?UNDERSTANDING AND WORKING WITH THE FEDERAL TAX LAW Q10
The deduction for charitable contributions can be explained by social considerations.
a. True
b. False