Question

True/False

Please explain the answer

1. If a progressive tax rate system is used, as a taxpayer's taxable income decreases, a progressively higher rate of tax is applied.

2. Using retroactive dates for changes in the tax law violates the objective of certainty as identified in Adam Smith's "canons of taxation."

3. Partnerships, S corporations and trusts are all taxpaying entities.

4. If offered a $400 credit or a $1,000 deduction, a taxpayer with a 30% marginal tax rate should take the deduction.

5. All taxpayers are allowed the full standard deduction ($12,200 for single taxpayers, for example) when filing a tax return.

6. Although the interest from municipal bonds is not taxable any gain on the sale of such bonds is taxable

Answer 1

solution & 1 False With income is rises, the progressive tax rate taxed at higher as income rate. 2) True. 3) True s our taxe system applicable on all entities, isrespective of there status, but there slaub may be defferent as per law. rate 9 True Income noo, Setra torx burden - 400x 0.3 Extra Income = 400-120 280k Deduction cooot Tax saring = 1000 x 0.3 =300 Extra income due to less Burden 300/- 5) false = mest tax payers are eligible to take Standard deduction and not all taxpayers. The word tax deduction amounts are determined by age and filling Status. 6) True & . Although the interest from muren & not taxable any gain on the sale of such bonds is tasable.