Corporate Income Tax

1. Which of the following taxes is the largest source of revenue for the US federal government?

a. PERSONAL INCOME TAX s

b. CORPORATE INCOME TAX

c. RETAIL SALES TAX

d. PAYROLL TAX

2. Which of the following taxes is the largest source of revenue for the State of Indiana’s government?

a. INDIVIDUAL INCOME TAX

b. RETAIL SALES TAX

c. PROPERTY TAX

d. CORPORATE INCOME TAX

3. Which of the following best represents a tax?

a. THE PAYMENT YOU MAKE FOR A COMPUTER ON AMAZON.

b. THE PAYMENT YOU MAKE TO SEND A PACKAGE WITH THE US POST OFFICE.

c. THE PAYMENT YOU MAKE TO THE GOVERNMENT FOR AN OCCUPATIONAL LICENSE.

d. THE PAYMENT YOU MAKE TO THE GOVERNMENT FOR GALLON OF GASOLINE YOU PURCHASE.

4. To compute tax revenue due from an individual or business entity, please describe in 2 or 3 sentences the two basic components that are necessary?

5. The statutory marginal tax rate tells us the change in a taxpayer’s tax liability if that taxpayer’s income increases by $1.

a. True

b. False