Which of the following is false?

Multiple Choice

A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base.

The average tax rate changes under a proportional tax rate structure, but it is static for a progressive tax rate system.

An example of a proportional tax is the tax on gasoline.

An example of a progressive tax is the federal tax on gifts.

None of the choices are correct.

Which of the following statements is true?

Multiple Choice

Income character determines the tax year in which the income is taxed.

Income character depends on the taxpayer's filing status.

Qualified dividend income is taxed at a lower rate than if the same amount were ordinary income.

A taxpayer selling a capital asset at a gain recognizes ordinary income.