Midterm 1

Question 1

What is a tax

Answer 1

A forced involuntary contribution.
Required by law
Providing revenue for public or gov purposes
For which no specific benefits or services are received

Question 2

What is the purpose of a tax?

Answer 2

Revenue generation
Encourages or discourages social behaviors
Encourages economic behavior
Promote equity

Question 3

What is a taxpayer

Answer 3

Any economic entity that pays taxes

Question 4

What is incidence?

Answer 4

Ultimate economic burden of a tax

Always falls on the person paying the tax right? Wrong- shift economic burden

Question 5

What is jurisdiction?

Answer 5

Right of government to levy a tax

Question 6

Types of taxes: state and local

Answer 6

Property
Sales/use tax
Excise tax
Income

Question 7

Types of taxes: federal

Answer 7

Income
Employment
Unemployment
Excise
Transfer

Question 8

Types of taxes: foreign

Answer 8

Income
Property sales
BIG EXCEPTION value added

Question 9

What is jurisdictional competition

Answer 9

Many business operate in multiple tax jurisdictions gives rise to competition

Taxes are inherently dynamic and political