6. The exclusion of interest of state and local bonds from taxation by the federal government a. decrease interest costs for state and local government b. increases interest costs for state and local governments c. benefits lower-income taxpayers more than upper-income taxpayers d. discourages borrowing by local governments 7. A shift to an equal-yield, flat-rate personal income tax from the current progressive incone tax rate structure will: a. reduce the tax burden on upper-income groups b. increase the tax burden on upper-income groups c. increase the share of taxes paid by lower-income groups d. both (a) and (c) 8. Which is an example of an itemized deduction under the U.S. code as of 20127 a. state and local income tax b. state and local property tax c. all medical expenses d. both (a) and (b). 9. A taxpayer is in a 33-percent tax bracket and itemizes deductions. He obtains a mortgage from a bank at 9-percent interest. The actual rate of interest he pays is: a. 6 percent b. 9 percent. c. 20 percent. d. 25 percent. 10The value of personal exemptions in terms of taxes saved: a. is the same for all taxpayers b. varies with family size. c. varies with taxpayers' marginal tax rates. d. both (b) and (c) Which of the following is true about the economic effects of the corporate income tax? a. Its incidence is likely to be borne entirely by workers. b. Its incidence is likely to be borne only by shareholders of corporations c. Its incidence is likely to be borne only by consumers of corporate products. d. Its incidence is likely to be shared by owners of capital, workers, and consumers of corporate 11. products. a. interest on borrowed money cannot be deducted from the tax base. b. only economic profits are taxed. c. only normal profit is taxed. d. the opportunity cost of equity cannot be deducted from the tax base. 12. Under the corporation income tax in the United States