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A good tax structure has five characteristics. Briefly discuss the five characteristics. Using the five characteristics, evaluate the following tax structures: Federal income tax State
A "good" tax structure has five characteristics.
Briefly discuss the five characteristics.
Using the five characteristics, evaluate the following tax structures:
Federal income tax
State sales tax
Local ad valorem property tax
Question content area bottom
Part
a Briefly discuss the five characteristics.
For each characteristic, choose the corresponding description.
Characteristic
Description
First row characteristic label input
Certainty
First row description label input
Ensures a stable source of government revenue. Provides taxpayers some sureness concerning their annual tax liability
Second row characteristic label input
Convenience
Second row description label input
Easily assessed, collected, and administered
Third row characteristic label input
Economy
Third row description label input
Minimal compliance and adminstrative costs
Fourth row characteristic label input
Simplicity
Fourth row description label input
Tax system is easy to understand and comply with
Fifth row characteristic label input
Equity
Fifth row description label input
Fairness of the tax to the taxpayers
Part
b Using the five characteristics, evaluate the federal income tax.
Select which characteristics the federal income tax meets the criteria of fairly well and which characteristics the federal income tax does not meet. If an input field is not used, leave the input fields empty. Do not select a label.
Federal Income Tax
Meets fairly well
Does not meet
Characteristic meets fairly well first row label input
Characteristic does not meet first row label input
Characteristic meets fairly well second row label input
Characteristic does not meet second row label input
Characteristic meets fairly well third row label input
Characteristic does not meet third row label input
Characteristic meets fairly well fourth row label input
Characteristic does not meet fourth row label input
Characteristic meets fairly well fifth row label input
Characteristic does not meet fifth row label input
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