AssetABCDECost?$40,00065,000230,000200,000ResidualValue$20,000?5,00010,00020,000ServiceLife(Years)58?108DepreciationMethodDDBSLSL? Most of this differential is due to the state tax, with 0.83% of the 4.755% total difference due to the federal tax and the interest surcharge, and 3.925% due to the state tax structure. a. there is sufficient money to fund private businesses. To decrease international trade Regressive taxes are those that are paid regardless of income, such as sales taxes, sin taxes, and property taxes. carrieunderwood. Explain which loan you would choose and why. A student who is interested in becoming an air traffic controller will make \end{array} Determine the intensity x that gives the maximum Technically, it's not a regressive tax because the rate is the same, but it does impose a greater burden on lower-income familiesthey end up reducing their spending on the basics to pay it. Conclusion. \text { Office rent expense } & 50,000 \\ Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. a. Withholding. \text { Cost of merchandise sold } & 3,650,000 \\ What Is Progressive Tax? - The Balance Describe the differences between a regressive, progressive and flat tax To explore this concept, consider the following regressive tax . Combined Distributional Impact of Imposed and Threatened U.S. Tariffs as of December 2018. The most important regressive tax is the value added tax (VAT), in which a certain percentage of the price paid for a product is charged on top as a tax. more money than an athletic trainer and will have an easier time finding a job. Before you prepare to read more about the challenges of globalization, consider what you know about it: a) What might be the benefits of globalization? The correct answer is income tax is a direct tax. Solved TAXATION-MCQ-PART I Encircle the letter only | Chegg.com Michael works for the Texas Department of Aging and Disability Services and needs to purchase new computers for the office. Under a flat tax, there are no special deductions or credits. A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports. A 2021 Gallup Poll found that 44% of those earning less than $40,000 reported they drink, while 62% of those with incomes from $40,000 up to $100,000, and 81% of those with incomes of $100,000 or more, drink. Incomestatementdata:Advertisingexpense$125,000Costofmerchandisesold3,650,000Deliveryexpense29,000Depreciationexpense-officebuildingsandequipment26,000Depreciationexpense-storebuildingsandequipment95,000Dividendrevenue3,575Gainonsaleofinvestment2,225IncomefromLifecareCo.investment65,600Incometaxexpense128,500Interestexpense19,000Interestrevenue1,800Miscellaneousadministrativeexpense7,500Miscellaneoussellingexpense13,750Officerentexpense50,000Officesalariesexpense165,000Officesuppliesexpense10,000Sales5,145,000Salescommissions182,000Salessalariesexpense365,000Storesuppliesexpense22,000\begin{aligned} Once a worker earns more than that amount, they don't have to pay any more Social Security tax for the year. One of the most important trends in the world today is globalizationthe movement toward a more integrated and interdependent world economy. Social Security payment by the government is a (n)? Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of$10 par value ordinary shares. A regressive tax system levies the same percentage on products or goods purchased regardless of the buyer's income and is thought to be disproportionately difficult on low earners. \text { Interest expense } & 19,000 \\ b. citizens contribute to meeting society's needs. A regressive tax is a tax imposed in such a manner that the average tax rate (tax paid personal income) decreases as the amount subject to taxation increases. Although the United States has a progressive taxation system when it comes to income tax, meaning higher income earners pay a higher percentage of taxes each year compared to those with a lower income, we do pay certain levies that are considered to beregressive taxes. Some examples of a regressive tax include sales tax, gas tax, and payroll tax. Regressive tax progressive tax direct tax proportional tax Weegy. The tax amount would be $4.35 per pack which would be paid by both rich and poor uniformly irrespective of their level of income and hence the tax is regressive. Which Sentence Best Describes A Regressive Tax? (Best solution) This is a straight forward Power Point with 22 slides that outlines many topics that surround Personal Finance. Among the changes that labor reformers wanted after the Industrial Revolution was With regressive taxes, the lower your income is, the higher the percentage of income you will pay. High-income earners can fight in court for the right to a reduced rate. Both are considered flat taxes. Provide some examples of each in Canada. People today are buying more foreign products, and firms are extending their operations on an international scale. \quad 86,570 \text { shares issued, } 82,670 \text { outstanding) } & 2,164,250 \\ \quad \text { Cash dividends for common stock } & 155,120 \\ An individual's earnings above this base are not subject to the 6.2% Social Security tax. owned by their employees. A regressive tax is one that is applied uniformly regardless of income, as opposed to a progressive tax, which is based on income. \text { Allowance for doubtful accounts } & 8,150 \\ Required The Texas Constitution was amended in 2019 to prohibit which tax? US federal income tax is progressive by law, but which best explains why wealthy individuals can often pay far less in taxes than the top tax rate? U. The amount of the standard deduction changes from year to year to keep pace with inflation. No, the federal income tax in the United States is progressive. Sales taxesareapplied as a percentage of sales prices. Choice 1: 303030-year fixed rate mortgage at 3.5%3.5 \%3.5% with closing costs of $1000\$ 1000$1000 and no points tx govt ch 11 Flashcards | Quizlet \end{aligned} \end{aligned} c. proportional tax. There was little government regulation of workplaces. Many low-income Americans pay no federal income tax at all because of tax deductions. You likely pay a version of each on income or goods. b. Once the recipient and their dependent spouse dies no more money is paid. Nottebart Corporation has outstanding 10,000 shares of $100 par value, 6% preferred stock and 60,000 shares of$10 par value common stock. a. This graph shows US revenue and expenditures between 1980 and 2010. a. Orjan F. Ellingvag/Dagens Naringsliv/Corbis via Getty Images. Alcohol taxes, on the other hand, aren't as regressive. fall until the supply rises. A tax bracket is a range of incomes subject to a certain income tax rate. What best describes a regressive tax - Maker Mag To assure that at least 60 percent of 25- to 34-year-olds have a postsecondary credential by 2030. Who receives funding from the TEXAS Grants Program? b. the amount of money invested in the property. They Inspire consumer confidence Learn more about how Pressbooks supports open publishing practices. owned by their members. Government Economic Policies 2 question Which of these best describes income tax. Tax rate, along with tax liability, increases as an individual's wealth increases. COVID-19 impact on women and gender equality | McKinsey In the U.S., income taxes operate under a progressive system. \quad \text { Cash dividends for preferred stock } & 85,000 \\ A business owner would most likely create a cooperative instead of buying a franchise because, Two doctors who join forces in business form a, The development of many new businesses helps limit, Many classical economists such as Adam Smith believed that government should. Contact the Statewide Procurement Division. Tax systems in the U.S. fall into three main categories: Regressive, proportional, and progressive. What was the composition of the identifiable and unidentifiable intangible assets reported by Coca-Cola and PepsiCo at the end of 2017? more jobs for untrained workers. d. Reducing spending, Which terms best describe sales tax? The government needs to raise taxes or cut spending. A tax that charges high-income earners a lower . \quad 17,000 \text { shares issued) } & 1,700,000 \\ the FDIC, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas. Mr. Francisco Cali Tzay . In addition to providing property management services for state facilities, what else does the Texas Facilities Commission do? Read the sample advertisement. Factory equipment was dangerous to operate. Pigouvian and sin taxes are specific types of regressive taxes. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. It encourages people to spread their resources around. A common example of a local tax is a parking ticket? Inflation can result from falling demand and boosts the value of money. How did the budget process change when Texas shifted from incremental budgeting to zero-based budgeting in May 2020? AssetCostResidualValueServiceLife(Years)DepreciationMethodDepreciation(Year2)A?$20,0005DDB$24,000B$40,000?8SL4,500C65,0005,000? hrc-ie-sogi@un.org or urgent-action@ohchr.org. 6.1-6. Briggs Excavation Company is planning an investment of $132,000 for a bulldozer. Cigarettetaxesare the most regressive excise tax. You'll start to feel full and won't eat as much. two bottles for $29.95 A regressive tax is one where the average tax burden decreases with income. Investopedia requires writers to use primary sources to support their work. "IRS Provides Tax Inflation Adjustments for Tax Year 2023.". Any other tax that confers an advantage to wealthy individuals is regressive. a. progressive tax. As COVID-19 continues to affect lives and livelihoods around the world, we can already see that the pandemic and its economic fallout are having a regressive effect on gender equality.By our calculation, women's jobs are 1.8 times more vulnerable to this crisis than men's jobs. What type of tax is this? Conwy's desperate financial situation has been likened to 'a hurricane' following the council's decision to raise council tax by 9.9%. What is a serious challenge facing Texans for the near future. Auser feeis a government charge to use public facilities or services. It waives tariffs on imports from countries with which it has free trade agreements. Under a proportional income-tax system, individual taxpayers pay a set percentage of annual income regardless of how much they earn. The highest amount a landlord can charge for rent is an example of Laws passed by Congress If you buy rice, the percentage charged as VAT is the same for all consumers, but that amount of money would mean more to a humble shop owner than to the US president, for example. owned and managed by private corporations. regressive tax, tax that imposes a smaller burden (relative to resources) on those who are wealthier. What were the amounts of accumulated amortization reported by Coca-Cola and PepsiCo at the end of 2016 and 2017? This is because they are taxed the same when consuming as higher earners$100 when shopping is worth more to a lower-tiered earner than it is to a higher-tiered earner, so taxes take more from them. What Is Regressive Tax? | Types, Advantages & Disadvantages These include white papers, government data, original reporting, and interviews with industry experts. Each dollar the individual earns places him into a bracket or category, resulting in a higher tax rate once the dollar amount hits a new threshold. This table compares the requirements for a career as an athletic trainer or an air traffic controller. a. Who has a regressive tax system? Explained by Sharing Culture \text { Preferred 5\% stock, \$100 par (30,000 shares authorized; } & \\ \text { Treasury stock (3,900 shares of common stock at cost of } & \\ If you sell your old car for more than you paid, the profit is subject to? The cigarette tax is regressive on two levels. The structural component of the budget outcome is affected by:A.Non-discretionary fiscal policy changes.B.Discretionary fiscal policy changes.C.The operation of automatic . "Are Federal Taxes Progressive? That's because the government assesses tax as a percentage of the value of the asset that a taxpayer purchases or owns. All of the following except one, are kinds of taxes as to rates, what is it? appropriately financed. Retainedearningsandbalancesheetdata:AccountspayableAccountsreceivableAccumulateddepreciationofficebuildingsandequipmentAccumulateddepreciation-storebuildingsandequipmentAllowancefordoubtfulaccountsAvailable-for-saleinvestments(atcost)Bondspayable,6%,due2022CashCommonstock,$25par(400,000sharesauthorized;86,570sharesissued,82,670outstanding)Dividends:CashdividendsforcommonstockCashdividendsforpreferredstockStockdividendsforcommonstockGoodwillIncometaxpayableInterestreceivableInvestmentinLifecareCo.stock(equitymethod)InvestmentinNordicWearInc.bonds(longterm)Merchandiseinventory(December31,2012),atlowerofcost(FIFO)ormarketOfficebuildingsandequipmentPaid-incapitalfromsaleoftreasurystockPaid-incapitalinexcessofpar-commonstockPaid-incapitalinexcessofpar-preferredstockPreferred5%stock,$100par(30,000sharesauthorized;17,000sharesissued)PremiumonbondspayablePrepaidexpensesRetainedearnings,January1,2012StorebuildingsandequipmentTreasurystock(3,900sharesofcommonstockatcostof$35pershare)Unrealizedgain(loss)onavailable-for-saleinvestmentsValuationallowanceforavailable-for-saleinvestments$195,000543,0001,580,0004,126,0008,150110,250400,000240,0002,164,250155,12085,00062,800510,00040,000930689,10062,000$780,0004,320,00018,200842,000150,0001,700,00019,00026,5008,708,15012,560,000136,500(17,750)(17,750), Divide the numbers and then round to the nearest hundredth. Taxes on most consumer goods, sales, gas, and Social Security payroll are examples of regressive taxes. Economics Flashcards | Quizlet \text { Income tax expense } & 128,500 \\ Income Taxes, India, Withholding Tax | JD Supra \text { Valuation allowance for available-for-sale investments } & (17,750)\\ Fuel taxes are designed to cover the cost of road usage and environmental impacts. So the taxpayer has a marginal tax rate of 24 percent. If you withdraw $10,000? Its opposite, a progressive tax, imposes a larger burden on the wealthy. A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports. b. indirect tax. State Income Tax vs. Federal Income Tax: What's the Difference? Which best describes Property tax? Officials are currently working on the statement of activities within the government-wide financial statements. A regressive system differs from a progressive system, in which higher earners pay a higher percentage of income tax than lower earners. "There is no rhyme or reason to it and it varies wildly from one county to another." Soloski suggested replacing the current property tax system with a county-based sales tax. Susan Johnson earned $15,000 last year. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator.