Test Bank For Fundamentals of Taxation 2023 Edition, 16th Edition By Ana Cruz Chapter 1-15 Answers are at the End of Each Chapter Chapter 01: Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) The U.S. individual income tax system is an example of a progressive tax rate structure. ⊚ true ⊚ false 2) A proportional tax rate structure is a tax where the tax rate remains at the same rate
regardless of the tax base. ⊚ true ⊚ false 3) Under a flat tax, the marginal tax rate and the average tax rate are different. ⊚ true ⊚ false 4) State and local taxes levied on either property or sales are examples of progressive taxes. ⊚ true ⊚ false 5) With a regressive tax, the tax rate increases as the tax base gets larger. ⊚ true ⊚ false 6) The marginal tax rate is the total tax liability divided by the taxable income. ⊚ true ⊚ false 7) The average tax rate is the total tax liability divided by the taxable income. ⊚ true ⊚ false