What is the difference between tax rates and tax rate structures? How does this notion of 'structure' relate to the vertical equity of a tax system? Select the INCORRECT response. a. A tax rate is the ratio of tax revenue to a tax base as set by statute such as an income tax rate or a mil rate. b. A tax rate structure is the set of rates related to a particular tax base. c. For the income tax, vertical equity can be categorized by observing the tax rate structure (how rates respond to income). d. Taxpayers face many different tax structures but only one tax rate.
What is the difference between tax rates and tax rate structures? How does this notion of 'structure' relate to the vertical equity of a tax system? Select the INCORRECT response. a. A tax rate is the ratio of tax revenue to a tax base as set by statute such as an income tax rate or a mil rate. b. A tax rate structure is the set of rates related to a particular tax base. c. For the income tax, vertical equity can be categorized by observing the tax rate structure (how rates respond to income). d. Taxpayers face many different tax structures but only one tax rate.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 3MC
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Question
What is the difference between tax rates and tax rate structures? How does this notion of 'structure' relate to the vertical equity of a tax system? Select the INCORRECT response.
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a. |
A tax rate is the ratio of tax revenue to a tax base as set by statute such as an income tax rate or a mil rate. |
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b. |
A tax rate structure is the set of rates related to a particular tax base. |
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c. |
For the income tax, vertical equity can be categorized by observing the tax rate structure (how rates respond to income). |
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d. |
Taxpayers face many different tax structures but only one tax rate. |
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