The reduced pre-tax rate of return on municipal bonds is an example of an explicit tax.

Taxes are voluntary payments paid to a government for a specific benefit received by the specific taxpayer

Jerry recently paid $20 in tolls for the Florida turnpike. The $20 payment is considered a tax.

The gift tax is imposed on the fair market value of items transferred upon death.

The marginal tax rate is often used ¡n tax planning.

Which of the following is an example of a progressive tax system?

Mitch, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2019, how much federal tax will he owe? (Tax rate schedule)

James invests $100,000 in a city of Athens bond that pays 8% interest. Alternatively, James could have invested the $100,000 in a bond recently issued by HighTech Inc. that pays 10% interest with similar risk as the city of Athens bond. Assume that James’s marginal tax rate is 25%. Which bond should James should choose and why?

The federal income tax is an example of a regressive tax system.

Taxes influence personal decisions such as whether to buy or rent a house.

Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. If Marc earned an additional $80,000, what would his 2019 marginal tax rate be on the $80,000 (rounded)? (Tax rate schedule)

Horizontal equity means that two taxpayers with different amounts of income should pay different amounts of tax but fairly in relation to their ability to pay.

Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2019, what is his average tax rate (rounded)? (Tax rate schedule)

Which of the following is considered a tax?

Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2019. what is his effective tax rate (rounded)? (Tax rate schedule)