Chapter 1, Problem 1RP

Which of the following best reflects the ability-to-pay philosophy of taxation?         a tax on residential property        a progressive income tax        an excise tax on gasoline        an excise tax on coffee

Which of the following is the best definition of tax planning? Oa. Planning taxpayers' financial affairs to find the best way to avoid tax by successfully bending tax law Ob. Planning taxpayers' financial affairs in an effort to minimize tax liability Oc. Researching complex tax issues Od. Preparing a client's tax return Oe. None of these choices are considered tax planning.

Assume that the United States Congress passes a tax law that provides for a "rebate" to taxpayers. One of the goals of the rebate is               A. Increase consumer disposable income and expand the economy.               B. Increase consumer disposable income and contract the economy.               C. Decrease consumer disposable income and expand the economy               D. Decrease consumer disposable income and contract the economy.